Chapter 6 - Decision Making Techniques Flashcards by Jade L

Q

Limiting factors:

How to calculate contribution per unit??

A

Selling price

Minus

Variable costs

IGNORE FIXED COSTS

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

Limiting factors

What is opportunity costs

A

Concentrating on the products with the highest contribution to maximise profit

How well did you know this?

1

Not at all

2

3

4

5

Perfectly