The correct answer is:
Product P4 70
Product P6 100
2.The correct answer is:B.
The contribution per limiting factor of P4 and P6 is $113.33 and $190 respectively, therefore P6 should be produced first.
The most profitable course of action can be determined by ranking the products and components according to
contribution per unit of the limiting factor. Direct material M1 is the limiting factor in this case, therefore the
highest rank will be given to the product/component with the greatest contribution per m 2 of this material.
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