- This topic has 3 replies, 2 voices, and was last updated 5 years ago by
.
Viewing 4 posts - 1 through 4 (of 4 total)
- Posts
Hello sir..
Session from Throughput.My doubt is why they did TPAR using Optimum contribution (80×1200)/80000 instead of taking TpAR=(Contribution/LF)/ (FC per hour). ($80/8 hrs)/(80000). Please advise.
The throughput contribution per hour is the throughout per unit divided by the hours per unit.
For X the throughput per unit is 150 – 70 = $80.
The hours per unit are 1/1,200 (since they are making 1,200 per hour).Therefore the throughput contribution per hour = 80 / (1/1200) = $96,000.
(And think about it, if they are making $80 contribution per unit and they are making 1,200 units per hour, then the total throughout contribution per hour has to be 1,200 x $80 = $96,000.)
Viewing 4 posts - 1 through 4 (of 4 total)
- The topic ‘BPP 2019-2020 (Sec B, Pg 18, qn 65 Corrie)’ is closed to new replies.