Contribution per unit of limiting factor

Could someone help me. I am on part b- I know the answer except I can’t work out how they got the limiting factor. I thought it was contribution/selling price *100. This worked for Lemon but Ginger I get 31.66 and the answer is 21.71???????

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  • dumutrobadumutroba AAT Student, AATQB Posts: 239
    edited April 19
    Contribution per limited factor is contribution/limiting factor per unit of production which is either material or kg, or labour in hours

    In this case is the material, so you will need to divide by the amount of material used per unit

    The lemon is 30/40=0.75 kg and ginger is 70/40=1.75kg
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  • Kc2016Kc2016 Registered Posts: 5
    How do they get 21.71 for Ginger?
    fedemenni
  • Kc2016Kc2016 Registered Posts: 5
    Omg thank you. I keep getting really confused with this part. I have an exam Thursday :(
  • fedemennifedemenni AATQB Posts: 47
    @Kc2016 I was confused as well for that part. you just need to calculate the contribution for the material or hours used for specific product. that will help you elaborate the best production level etc. I have exam on Wed :(
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