When a bottleneck occurs between two products, the company must determine the contribution margin for each product and manufacture the product that has the highest contribution margin per bottleneck hour.

Question

Quizplus · Accepted Answer

This is a correct statement. When a bottleneck occurs, the company should focus on producing the product that generates the highest profit per unit. In this case, it would mean producing the product with the highest contribution margin per bottleneck hour.

When a Bottleneck Occurs Between Two Products, the Company Must