Senator Pet Foods make a variety of canned and dried food for pets. The Center Street Manufacturing Campus is the site of the

original Senator plant and is used solely for the production of their original variety of canned food for dogs. The production of the food

requires roughly five steps: grinding, mixing, canning, cooking, and packaging. Grinding and mixing take place in the North Building on

the Campus. The raw, mixed food is then transported to the South Building, also on the Campus, where it is canned, cooked, and

packaged in cases of twelve cans. The cases are shipped daily and are never kept in inventory.

Weekly capacities and production levels $($in cases$)$ in the two buildings are as follows.

The company could sell $16,560$ cases weekly. The cases sell for $$15\mathrm{.}80$ each and have a variable cost of $$5\mathrm{.}55$ each. Fixed costs are

$$64,800$ per week.

Required:

a$.$ Is there a bottleneck at Senator Pet Foods' Center Street Campus on North Building or South Building?

b$.$ The plant manager reports that capacity could be increased by $4,140$ cases weekly in the North Building by producing on the

weekend. Producing on the weekend would not affect the sales price. Variable cost per unit would increase by $$2\mathrm{.}45$ for those cases

produced on the weekend because of the premium paid to labor. Fixed costs would also increase by $$10,600$ per week.

b$-1.$ Calculate the differential operating profit $($loss$).$

b$-2.$ Should the Center Street Manufacturing Campus produce pet food on the weekend?

c$.$ The managers at the Center Street Manufacturing Campus are also studying increasing capacity in the North Building by adding

additional personnel to clean and prepare the mixer between batches. This would increase its capacity in the North Building by $3,450$

cases weekly. This would not affect sales price. Variable cost would increase by $$0\mathrm{.}75$ per case for all units produced. Fixed costs will

increase by $$19,800$ per week.

c$-1.$ Calculate the differential operating profit $($loss$).$

c$-2.$ Should the Center Street campus expand the North Building's capacity by adding these additional workers?