When a bottleneck occurs in a process used in the production of multiple products, the company must determine the contribution margin for each product and give priority to the product that has the lowest contribution margin per bottleneck hour.

Question

Quizplus · Accepted Answer

When a bottleneck occurs, the company should prioritize the product with the highest contribution margin per bottleneck hour, as this maximizes profitability and efficiency by focusing on the products that contribute the most to covering fixed costs and generating profit per limited resource hour.

When a Bottleneck Occurs in a Process Used in the Production