Key factor analysis

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March 21, 2018 at 7:54 pm #443311
michaelsamiotis
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Good afternoon. I would like to ask if it is always necessary to divide the contribution with the hours per unit. Why do we mind that? We do the same even if the limited resource isn’t the available hours? I am exempted from F2. Thank you very much. 🙂
March 22, 2018 at 7:02 am #443345
John Moffat
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We divide the contribution by whatever the limiting factor is – usually it is hours but if it was (for example) materials then we divide by the materials required per unit.
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