Accounting · Management Accounting
A product has a bottleneck activity requiring 5 minutes per unit. Total bottleneck time available is 2,000 minutes. If the throughput accounting ratio (TPAR) must be at least 1.25, and total conversion costs are $8,000, what is the minimum throughput (contribution) required per unit?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1$20
- 2$40
- 3$50
- 4$25✓
Correct answer
$25
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