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A manufacturer has a choice of making three products, Alpha, Beta or Delta. Due to a temporary constraint of available machine hours (MHs) in the
A manufacturer has a choice of making three products, Alpha, Beta or Delta. Due to a temporary constraint of available machine hours (MHs) in the plant due to maintenance, only 1240 Machine Hours will be available per week for the next few months.
The manager has asked if there is any way they can maximize returns to the company (CONTRIBUTION MARGIN ‐ CM) by limiting which units to produce during this time. Known/regular demand for the Alpha, Beta and Delta products are 100, 200 and 100 respectively.
Required:
1) Utilize your knowledge of product mix to maximize CM by working out which products to make in order
The manager has asked if there is any way they can maximize returns to the company (CONTRIBUTION MARGIN ‐ CM) by limiting which units to produce during this time. Known/regular demand for the Alpha, Beta and Delta products are 100, 200 and 100 respectively.
Required:
1) Utilize your knowledge of product mix to maximize CM by working out which products to make in order
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Cost Management Measuring Monitoring And Motivating Performance
Authors: Leslie G. Eldenburg, Susan K. Wolcott
2nd Edition
978-0-470-7694, 0470769424, 978-0470769423
