- Part B 20 Marks King Supply Makes Four Different Types Of Plumbing Fixtures W X Y And Z The Contribution Margin 1 (113.3 KiB) Viewed 32 times
Part (B): (20 Marks) King Supply makes four different types of plumbing fixtures: W, X, Y and Z. The contribution margins for these products are: $70 for 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 manufacture of each fixture requires four machines, 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 MEC_AMO_TEM_035_02 Page 2 of 14 Operations Management (BUSS-B 1006) - Spring 2021-CW (3) - QP 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: 70 Ws, 60 Xs, 50 Ys and 30 Zs. 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. Identify the bottleneck operation.