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Contribution Margin Per Unit of Constrained Resources Is Calculated by Dividing

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Contribution margin per unit of constrained resources is calculated by dividing contribution margin per unit by quantity of the constrained resources required per unit.


Definitions:

Item's Flow

The movement and progress of items through a production or supply chain process from raw materials to finished products.

Work-Centre Master File

A work-centre master file is a comprehensive database containing details about production centers in a manufacturing environment, including capabilities, capacities, and scheduling information.

Wage and Hour Law

Legislation that sets the standards for minimum wage, overtime pay, and other administrative requirements affecting employees in their place of work.

Labour Scheduling

The process of assigning work hours to employees in a way that meets both the operational needs of the business and the preferences or constraints of its workers.

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