Bottleneck Profit Product K has a unit contribution margin of $120. Product L has a unit contribution margin of $100. Product K requires five furnace hours, while Product L requires four furnace hours. Determine the unit contribution margin per production bottleneck hour for each product, assuming the furnace is a bottleneck constraint. Product K $ Product L $   is the most profitable in using bottleneck resources.

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Bottleneck Profit

Product K has a unit contribution margin of $120. Product L has a unit contribution margin of $100. Product K requires five furnace hours, while Product L requires four furnace hours.

Determine the unit contribution margin per production bottleneck hour for each product, assuming the furnace is a bottleneck constraint.

Product K $
Product L $

  is the most profitable in using bottleneck resources.

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