Unformatted text preview: 2. Turn that into a Contribution Margin per Machine hour (CM per unit/MH per unit) 3. Take the highest CM per unit and focus the next step on it. 4. Make as many as possible of the highest per unit CM product, considering any internal constraints (machine availability) and external constraints (customer orders) 5. One you have maxed out on the most profitable unit, apply any remaining machine time to the other units in order of profitability. 6. As always, consider any other non-financial issues....
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- Winter '12
- Contribution Margin, optimal mix, Gross profit margins, Sales Mix Companies