maximising profits

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:28AM in AAT student discussion
can you help, please I am a bit confuse, when you are doing ranking, eg how much of each product you will need to maximise profits using 3500 labour hours what do use to place the rank, is it the contribution per unit or the contribution per machine hours. I might not be putting the question across clear but can someone please help, I need to know before monday, thanks

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    maximising profits

    I would use the contribution per machine hours, <BR>if in the question it is asking about profits then you would use the contribution per unit and which ever has the highest contribution per unit you would make more of. <BR>But in the case of the question involving machine hours or labour hours then you would calculate unit contribution divide by machine hrs per unit to get cont per machine hrs then the one with the highest you would make the most of<BR><BR>i hope this helps any
  • System
    System Posts: 100,534 🤖 Admin 🤖
    maximising profits

    thanks much

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