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Table 7.6 Burdell Industries Makes Four Different Models of Computer Printers: the Printers

question 95

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Table 7.6
Burdell Industries makes four different models of computer printers: the E-1000,the S-2000,the P-2000 and the N-1000.The E-1000 sells for $200 and has $40 in parts and $40 in labor;the S-2000 sells for $150 and requires $30 in parts and $30 in labor;the P-2000 sells for $100 and has $20 in parts and $20 in labor;and the N-1000 sells for $75 but requires only $10 of parts and $10 of labor.Fixed overhead is estimated at $5,000 per week.The manufacture of each printer requires four machines,Machines #1,2,3 and 4.Each of the machines is available for 40 hours a week and there is no setup time required when shifting from the production of one product to any other.The processing requirements to make one unit of each product are shown in the table.Weekly product demand for the next planning period has been forecasted as follows: 80 E-1000s;65 S-2000s;35 P-2000s;and 20 N-1000s. 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 7.6.Using the bottleneck method,what is the optimal product mix?

Definitions:

Respiratory Rate

The number of breaths taken per minute, an important vital sign indicating the efficiency of the respiratory system.

Carbon Dioxide

A colorless, odorless gas produced by burning carbon and organic compounds and by respiration, and absorbed by plants in photosynthesis.

A numerical scale used to specify the acidity or basicity of an aqueous solution, where 7 is neutral, values less than 7 are acidic, and values greater than 7 are basic or alkaline.

Expiratory Reserve Volume

The additional amount of air that can be forcefully exhaled after a normal exhalation, used to measure lung function.