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IF DEMAND IS UNLIMITED BUT DMARE LIMITED TO 6,000 LBS., WHAT WILL BE THE TOTAL CM? - If demand for each product line is unlimited,
IF DEMAND IS UNLIMITED BUT DMARE LIMITED TO 6,000 LBS., WHAT WILL BE THE TOTAL CM? - If demand for each product line is unlimited, we would make only Product X and stop making Products Y and Z. - Our CM would be 2000 units of Product X times the CM per unit of $54 which is $108,000 - OR - If you prefer to think of it in terms of Ibs of DM, it would be 6000lbs. times $18 per pound which is also $108,000. IF DEMAND IS UNLIMITED BUT DMARE LIMITED TO 6,000 LBS., WHAT WILL BE THE TOTAL CM? - If demand for each product line is unlimited, we would make only Product X and stop making Products Y and Z. - Our CM would be 2000 units of Product X times the CM per unit of $54 which is $108,000 - OR - If you prefer to think of it in terms of Ibs of DM, it would be 6000lbs. times $18 per pound which is also $108,000
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