Question: We have made the point that managers often attempt to maximize the contribution margin per unit of a particular resource that limits output capacity. The
1. Small medical or dental practice
2. Restaurant
3. Supermarket
4. Builder of residential housing
5. Auto dealer’s service department
Instructions
With a group of students:
a. For each type of business, identify the factor that you believe is most likely to limit potential output capacity.
b. Suggest several ways (other than raising prices) the business can maximize the contribution margin per unit of this limiting resource.
Step by Step Solution
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1 The doctors or dentists time direct labor is the limiting factor This is why most doctors no longer make house calls To increase contribution margin per hour the practitioner tries to see as many pa... View full answer
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290-B-M-A-I-A (265).docx
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