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Products Uno, Dos, Tres, and Quatro have contribution margins of $2, $3, $4, and $5, respectively, and require 1.5, 2, 2.5, and 3 machine hours per unit, respectively. Assuming that all units produced could be sold and that total machine hours per month are limited, on which product should the company concentrate its efforts?
Marginal Physical Product
The change in output resulting from employing one more unit of a particular input, all else being constant.
Productivity
The measure of the efficiency of production, often evaluated as the ratio of output to inputs in the production process.
Complementary Resources
Natural or manufactured materials that work together with another resource in production to create a product or service.
Productivity
A measure of the efficiency of production, often expressed as the ratio of output to input in the production process.
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