What is contribution margin for a product? How might it be used to manage the productive resources on a shop floor?
What will be an ideal response?
Contribution margin is the amount each product contributes to profits and overhead. Determining which product has the highest contribution margin and producing it at the expense of other products is the traditional method of shop floor management. The Theory of Constraints instead studies product's contribution margin based on bottleneck usage, which may be entirely different.
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Indicate whether the statement is true or false
Suppose that you are beginning an investment plan. You have decided that you want to retire in 30 years with $1,000,000 in your bank account at that time. How much would you need to invest at the end each of the next 30 years if you could earn 8%?
A) $11,924,613.33 B) $83,860.16 C) $46,030.93 D) $22,045.16 E) $8,827.43