1. Bank loan. Mrs. Tweedy probably put together a reasonable statement to the bank showing how improved the business would be and the bank probably gave them a loan or a mortgage (second mortgage) or what-have-you. That makes the ending all the more disastrous for the villains. Mr. Tweedy's mechanical ineptitude will be blamed for the explosion, the insurance probably won't cover it, and the Tweedy's are out on their bottoms.
2. Mr. Tweedy is, indeed, that slow-witted. He probably flipped to the instructions and just started putting gears where it told him. Or, possibly, Mrs. Tweedy just read it out to him, dictated his putting the machine together. Either way, Mr. Tweedy never shows enough forethought to put two-and-two together. He'd miss that it was a pie machine for sure. Also, since Mr. Tweedy's idiocy is a character trait which in no way advances or suspends the plot, it's not really a plot hole.
3. The baby chicks were fathered by Rocky or Fowler. Depending on how chickenlike the chickens are supposed to be, they might be okay with open relationships. Plus, old men aren't necessarily infertile men. They can keep fathering children well into their autumn years. Additionally, they might have run into another rooster or two.
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