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If machine hours are a constraining factor,the product with the highest contribution margin per machine hour should be prioritized in production.Managers should maximize the contribution margin earned per amount of constrained resource.
Social Security Tax
A tax that funds the Social Security program, collected from both employers and employees.
Medicare Tax
A federal tax that funds Medicare, the U.S. government's health care program for seniors and certain individuals with disabilities, withheld from an employee's paycheck.
Gross Pay
The total amount of money an employee earns before any deductions are taken out.
Net Pay
The amount of an employee's earnings after all deductions, such as taxes and retirement contributions, have been subtracted.
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