Choose a demand-limited product mix
See this course’s project requirements
A two-product costing and constrained-capacity model with contribution, overhead, bottleneck minutes and a demand-limited production recommendation.
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What to include
- A cost-classification and unit-cost schedule.
- A contribution schedule and two-product profit bridge.
- An overhead-rate and applied-versus-actual reconciliation.
- A capacity feasibility and contribution-per-minute table.
- A checked feasible product mix with an explicit tie and resource ledger.
- A price/capacity sensitivity and conditional product-mix recommendation.
Review and revise
Use these criteria to check your work and choose what to improve.
- Costs: behavior, units and overhead assignment are explicit.
- Feasibility: time/demand/whole-unit constraints hold.
- Objective: contribution and fixed-pool profit reconcile.
- Decision: ties and changed-price/capacity scenarios are checked.
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The idea in everyday life
Original fictional practice. All money is USD. No account, payment, personal record or outside participation is required. Fictional workshop sells whole units only. Product A: price 30, variable material 12, variable labor 6, bottleneck 6 min, demand cap 50. Product B: price 24, material 8, labor 4, bottleneck 4 min, demand cap 80. Available bottleneck time 600 min. Monthly fixed manufacturing overhead 600, budget activity 600 min (rate 1/min). All produced units sell within demand limits; no inventory, other constraints or taxes in this bounded model.
A feasible maximum can have more than one equally good mix.
Choose a demand-limited product mix — complete worked case
A feasible maximum can have more than one equally good mix.
Fictional workshop sells whole units only. Product A: price 30, variable material 12, variable labor 6, bottleneck 6 min, demand cap 50. Product B: price 24, material 8, labor 4, bottleneck 4 min, demand cap 80. Available bottleneck time 600 min. Monthly fixed manufacturing overhead 600, budget activity 600 min (rate 1/min). All produced units sell within demand limits; no inventory, other constraints or taxes in this bounded model.
Two products
Paste at A1.
| AProduct | BPrice | CMaterial | DVariable labor | EMachine min | FMax demand |
|---|---|---|---|---|---|
| A | 30 | 12 | 6 | 6 | 50 |
| B | 24 | 8 | 4 | 4 | 80 |
Copy as plain text
1. 5.1 Choose
Allocate B up to its 80 demand cap, then divide remaining 280 min by 6 and round whole A units down.
You should see: 46 A fits;47 A would exceed 600 when B remains 80.
2. 5.2 Choose
Calculate used time, unused time, contribution and overhead-adjusted profit.
You should see: 596 used,4 spare,1,512 contribution,912 profit.
3. 5.3 Choose
Check A-first and the 79 B/47 A alternative explicitly.
You should see: A-first 900 profit;79 B/47 A ties 912.
4. 5.4 Choose
Enumerate A=0 through 50 on paper with B=min(80, floor((600−6×A)/4)), or run the supplied original Python. Keep all maximizing feasible rows, not one falsely unique result.
You should see: The three maxima are (46,80), (47,79) and (48,78), each with 1,512 contribution. Used minutes are 596, 598 and 600 respectively.
What to finish
A checked feasible product mix with an explicit tie and resource ledger.
Watch for this
Rounding up remaining units or calling the first priority plan uniquely optimal.
How can I tell I understand it?
Verify that your completed checked feasible product mix with an explicit tie and resource ledger meets the three lesson-specific checks and retains the supporting original records.
Quick knowledge check
Answer all 3 questions. Get at least 2 right and the lesson completes automatically.
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Answer all 3 questions above and get at least 2 right. You can review the explanations and try again.
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Sources and further reading
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Source & access notes · checked 2026-10-01
Read unit contribution per scarce resource. This course adds its own whole-unit demand limits and exhaustive small-case comparison.
Access: Public primary page body opened and relevant sections read through the web reader on 2026-10-01; no account required for reading.
Reuse: Original Life Starter cases, datasets and questions; no source exercise or worked dataset reproduced. Links support further reading.
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