Contribution per Limiting Factor (Optimal Product Mix) | Relevant Costing

Check out this free session on how to deal with the following two questions when dealing with limited resources:
1) Optimal product mix
2) Calculate maximum profit
For more info on Tabaldi's BCom(pt) Support Courses, visit: www.tabaldi.org/support-for-b...

[@mrpee2482]

God Bless You Sir 🔥🔥🔥 This is Awesome

[@jesseleighgordon33]

Great video.

[@madinasodiqova4190]

thank you very much for good explanation !

[@sarahscreativityhub9954]

Sir wonderful way of explanation!! Easy in 4 steps! Thank you sir :)

[@TabaldiEducation]

Most welcome!

[@zukisanisitela3535]

Thank you so much ... the lecture is really helpful :)v

[@charanshani2006]

thank you very much this helped a lot!!!

[@TabaldiEducation]

I am glad to hear that!

[@thabochauke3505]

Thank you Sir

[@TabaldiEducation]

Anytime, Thabo!

[@mariaramokone8193]

This was helpful thanks sir

[@TabaldiEducation]

Glad it helped, Maria!

[@SamuelLucas-mp6fk]

hi there what if fixed costs change for relevant ranges of output? e.g for product a fixed costs are 50,000 up to 100,000 units produced and for B it could be 80,000 for 100,000 units produced. DOes this effect product mix and maximum profit?

[@LM-he7eb]

“I love management accounting” -I can’t relate

[@TabaldiEducation]

You are not alone. So many students do not like Mac at all. It you start understanding the principles, instead of trying to memorise the steps, it can become more enjoyable. Either way, the way you approach it will have the biggest impact on your marks in the exam. Good luck!

[@FaheemProductions]

What if both products with Sales Demand (units per month) were 1200??

[@TabaldiEducation]

Hi Faheem. The sales demand won't affect the steps. You'll just produce and sell as many of the highest ranking (ito contribution per limiting factor) product until sales demand is met. Then move on to the next highest.