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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Throughput return per hour
Hi John, this question is from BPP Mock exam – question 4. I got the right answer correctly by calculating the marginal cost and then dividing it by bottleneck hour which is 0.1 (6 minutes converted into hour). but later realized that the 6 mins was actually divided by the conversion costs of $60. why did we divided it by the conversion cost? I’d thought that in order to get the return per hour we will need to convert the 6 mins to hour. Please can you help
It is not divided by the conversion cost.
It is divided by 60 because there are 60 minutes in an hour.