QUESTION $16$

able $5\mathrm{.}3$

ing Supply makes four different types of plumbing fixtures: W$,x,Y$ and Z$.$ The contribution margins for these products are: $$70$ or Product W$,$ $$60$ for Product X$,$ $$90$ for Product $Y$ and $$100$ for Product Z$.$ Fixed overhead is estimated at $$5,500$ per week. The hanufacture of each fixture requires four machines, Machines #$1,2,3$ and $4.$ Each of the machines is available for $40$ hours a veek and there is no setup time required when shifting from the production of one product to any other. The processing equirements to make one unit of each product are shown in the table. Weekly product demand for the next planning period las been forecasted as follows: $70$ Ws$,60$ Xs$,50$ Ys and $30Zs.$

$\backslash$table$[[,$Processing Time $($Minutes Per Fixture$)],[$Fixture$,$Machine $1,$Machine $2,$Machine $3,$Machine $4],[$W$,10,15,10,5],[$X$,5,10,15,10],[$Y$,20,5,5,10],[$Z$,15,5,5,10]]$

In the questions that follow, the traditional method refers to maximizing the contribution margin per unit for each product, and the bottleneck method refers to maximizing the contribution margin per minute at the bottleneck for each product.

Use the information in Table $5\mathrm{.}3.$ Using the traditional method, what is the profit if King Supply manufactures the optimal product mix?

less than or equal to $$10,000$

greater than $$12,000$

greater than $$11,000$ but less than or equal to $$12,000$

greater than $$10,000$ but less than or equal to $$11,000$