Choose a model product under a real bottleneck
A fictional production unit has one machine available for a limited number of hours. Product A supplies CHF 40 contribution per unit and needs two machine hours; product B supplies CHF 30 and needs one hour. The manager ranks A first because its unit contribution is larger. The exercise asks for a narrow contribution-per-machine-hour comparison and then an explanation of the limitations. Demand, setup time, quality and other operational constraints have not been quantified, so the numerical ranking is not a complete production instruction. Fixed costs are unchanged in the stated comparison. The scenario also notes that an old development study was already paid for and cannot be recovered or changed by the current product decision.
1. Compare the two supplied contributions per machine hour.
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A gives CHF20 per constrained hour; B gives CHF30. B ranks higher on that defined measure, but demand, setup, safety and other constraints must still be incorporated before a complete feasible plan is chosen.
2. How should the old study affect the current alternatives?
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As described, it is an unchanged sunk cost and does not become a new cash outflow caused by choosing either product. Analyze future differences and any opportunity costs instead of recounting the study selectively.