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Bottleneck profit Product K has a unit contribution margin of $120. Product L has a unit contribution margin of $100.
Bottleneck profitĀ
Product K has a unit contribution margin of $120. Product L has a unit contribution margin of $100. Product K requires five furnace hours, while Product L requires four furnace hours.
How do I Determine the most profitable product, assuming the furnace is a bottleneck constraint?