Bertucci Corporation Makes Three Products That Use the Current Constraint

question 370

Multiple Choice

Bertucci Corporation makes three products that use the current constraint which is a particular type of machine. Data concerning those products appear below: Rank the products in order of their current profitability from most profitable to least profitable. In other words, rank the products in the order in which they should be emphasized.(Round your intermediate calculations to 2 decimal places.)

• A) TC, NG, GL
• B) GL, NG, TC
• C) GL, TC, NG
• D) TC, GL, NG

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Definitions:

Contribution Margin

Contribution margin is a financial metric that represents the difference between a company's sales revenue and variable costs, used to assess the profitability of individual products or services.

Profit Goal

A financial objective set by businesses that aims to achieve a specific amount of profit over a certain period of time.

Management By Objectives (MBO)

A strategic management model that aims to improve the performance of an organization by clearly defining objectives that are agreed to by both management and employees.

Employee Motivation

The level of enthusiasm, drive, and commitment that employees bring to their work and roles within an organization.