7. Falcon Sports Inc. makes a line of jet skis. There are eight different end items (catalog numbers) in the jet ski product line. The jet skis vary according to horsepower, seating capacity, and starting mechanism. The company expects to sell one-half of the jet skis in the 12-horsepower model and one-half in the 10-horsepower model. The seating capacity breaks down to 60 percent for dual seating and 40 percent for single seating. The breakdown for starters is 25 percent manual and 75 percent automatic.

a. Group the component parts. Which are common? Which are associated with horsepower? Seating style? Starter?

b. Create a planning bill for jet skis matching the appropriate components with each option (include the usage percentages).

c. What are the advantages and disadvantages of the planning bill approach to planning?

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Catalog number 2100 2101 1100 1101 2120 2121 1120 1121 Horsepower 10 10 10 10 12 12 12 12 Seating style Dual Dual Single Single Dual Dual Single Single Starter Manual Auto Manual Auto Manual Auto Manual Auto Component parts 602 602 602 602 601 601 601 601 350 350 360 360 350 350 360 360 400 400 400 400 400 400 400 400 235 230 235 230 235 230 235 230 320 320 315 315 320 320 315 315 600 600 600 600 600 600 600 600 250 254 250 254 250 254 250 254 410 410 410 410 610 610 610 610