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limiting factors

smithy44smithy44 Feels At HomeRegistered Posts: 31
in General AAT student discussion
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

Comments

  • HadynBHadynB Feels At Home Registered Posts: 38
    The main points are there. Maybe mention calculating the total contribution after the mix, take off fixed costs and then the revised profit.
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