Question 1 Garden Retreat Ltd manufactures wooden benches. Each bench sells for 800 and the material cost per unit is 250. Labour and variable overheads are 800 and 500 per week respectively. Fixed factory costs are 250,000 per annum. The benches are made on three different machines. Machine A makes and turns the 4 legs required for each bench. It can produce 400 legs per day. Machine B manufactures the other parts for the bench and can produce parts for 70 benches per day and Machine C can process and assemble 50 benches per day. The company operated under a just-in-time system, which holds little work-in-progress and no finished goods inventory. The company operates 8 hours a day, 5 days a week and 48 weeks a year. But due to the maintenance requirement, each machine will stop working a week in a year. Required: a) Identify the daily output of machine A, B and C for manufacturing the bench, and explain which machine is the bottleneck resource. [2 marks] b) Calculate the throughput accounting ratio for the bottleneck resource. (Round to 2 decimal places.) [9 marks] c) Explain how Garden Retreat Ltd could improve the throughput accounting ratio of the bottleneck resource. (5 marks] d) Explain what continuous improvement in Lean Management is, and how an understanding of bottleneck resource is important for a company's continuous improvement? [4 marks] [Total 20 marks]