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Product K is made in a production process where machine time is a bottleneck resource. One unit of K requires 0.6 machine hours. The costs
Product K is made in a production process where machine time is a bottleneck resource. One unit of K requires 0.6 machine hours. The costs and selling price of Product K are as follows:
| |
Materials | 15 |
Labour (0.5 hours) | 9 |
Other factory costs | 1 |
Total | 25 |
Sales price | 32 |
Profit | 7 |
In a system of throughput accounting, what is the throughput accounting ratio for Product K? Give your answer to 1 decimal point.
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