Economics · Cost Accounting
A textiles manufacturer makes three textiles: Ax, By and Cz. The dyeing process is a bottleneck resource. Product Info: - Ax: Selling price = 10, Material cost = 3.0, Other variable costs = 2.0, Dyeing time = 10 mins - By: Selling price = 11, Material cost = 3.0, Other variable costs = 3.5, Dyeing time = 10 mins - Cz: Selling price = 12.5, Material cost = 4.0, Other variable costs = 2.0, Dyeing time = 15 mins What will be the ranking of the textiles in order of priority for the throughput maximising production plan (using Throughput Contribution per bottleneck minute)?
- 1By, then Cz, then Ax
- 2By, then Ax, then Cz✓
- 3Cz, then By, then Ax
- 4Ax, then By, then Cz
Correct answer
By, then Ax, then Cz
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