limiting factors

smithy44

hi new to this, hope someone can help? I have almost past my unit 6 sim - i have to give a verbal answer to one of my questions that i didn't have enough information. The questions was How would you proceed with a limiting factor (there was a shortage of labour hours).

This is my answer:

Work out the contribution per unit
work out the contribution per labour hour
Rank the products
Revise the production & sales mix
Revise the budgeted profit

Is this what she will want to hear, can't think of anything else

HadynB

The main points are there. Maybe mention calculating the total contribution after the mix, take off fixed costs and then the revised profit.