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5 September, 17:32

The traditional method of making product mix decision considers

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  1. 5 September, 19:19
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    Options:

    A. not producing products that have a large capacity impact on the bottleneck.

    B. producing products that have a large capacity impact on the bottleneck first.

    C. producing the products with the highest contribution margins first.

    D. not producing the products with the lowest contribution margins at all.

    Answer: C. producing the products with the highest contribution margins first

    Explanation: Product mix is a term used to determine the amount or number of a certain product that can be released or produced to the market. A product mix contains different products in the list of product portfolio of a company, traditional methods of making product mix decisions ensures that the product with the highest margins will be produced first before considering other products, this is to support the profit maximisation aim of business organisations.
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