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Contribution margin per scarce resource Contribution margin formula = P - VC/q Contribution margin per scarce resource = CM / limited (scarce) resource 1.
Contribution margin per scarce resource Contribution margin formula = P - VC/q Contribution margin per scarce resource = CM / limited (scarce) resource 1. What is in our case scarce resource? > The amount of labour likely to be available amounts to 20.000. Labour required: Service Alpha 000 Beta Gamma Total 000 000 0.00 Labour 12 27 27.000 > 20.000 II. To maximize the profit priority should be given to the production that maximizes the contribution per unit of limiting factor. Contbution margin per scarce resource Alpha: 2,33 Order of prianty: 13 Rate: 2,83 1. Beta 2. Alpha 14 3. Gamma Gamma 1,17 12 3
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