2C2M MILTON MANUFACTURING OCCASIONALLY HAS CAPACITY PROBLEMS IN ITS M...
258.
CSO: 2C2g
LOS: 2C2m
Milton Manufacturing occasionally has capacity problems in its metal shaping division,
where the chief cost driver is machine hours. In evaluating the attractiveness of its
individual products for decision-making purposes, which measurement tool should the
firm select?
If machine hours do not
If machine hours
constrain the number
constrain the number
of units to be produced
of units to be produced
a.
Contribution margin
Contribution margin per machine hour.
b.
Gross profit
Contribution margin.
c.
Contribution margin
Contribution margin ratio.
d.
Contribution margin per
Contribution margin.
machine hour