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One of your relatives is running a small factory in Manama. The factory makes only three products, A , B and C . Data concerning
One of your relatives is running a small factory in Manama. The factory makes only three products, A B and C Data concerning the three products as follow per unit:Your relative told you that the available capacity of the machine is only machinehours available, and he faced a problem in meeting estimated customer demand and started thinking to lease additional machine to meet the customers' demand. Considering that you are studying Managerial Accounting this semester, how you can advise your relative in the following requirementsRequirements: Calculate each product's contribution margin per unit of the constraining resource Calculate the highest possible total contribution margin that the factory can earn if it makes optimal use of its constraining resource Explain two ways through which the manager can increase the capacity of the constraint resources.
One of your relatives is running a small factory in Manama. The factory makes only three products, A B and C Data concerning the three products as follow per unit:Your relative told you that the available capacity of the machine is only machinehours available, and he faced a problem in meeting estimated customer demand and started thinking to lease additional machine to meet the customers' demand. Considering that you are studying Managerial Accounting this semester, how you can advise your relative in the following requirementsRequirements: Calculate each product's contribution margin per unit of the constraining resource Calculate the highest possible total contribution margin that the factory can earn if it makes optimal use of its constraining resource Explain two ways through which the manager can increase the capacity of the constraint resources.
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