Business Contribution Analysis

The video tutorial discusses the optimum use of scarce resources, focusing on a company's product demand and cost structure. It explains how to calculate contribution per unit and optimize material allocation to maximize profit. The tutorial also covers creating a production schedule and evaluating supplier options to address material shortages, providing recommendations for maintaining production efficiency.

What is the main focus of the video tutorial?

• Studying customer satisfaction

• Exploring new product development

• Learning about marketing strategies

• Understanding the concept of scarce resources

Which products are discussed in the company's cost structure?

• Products 1, 2, and 3

• Products A, B, and C

• Products X, Y, and Z

• Products M, N, and O

How is the contribution per unit calculated?

• Selling price minus variable overhead

• Selling price minus fixed costs

• Selling price minus direct costs

• Direct costs minus variable overhead

What is the contribution per kilogram for Product B?

• £8.00

• £5.00

• £7.20

• £6.50

Which product should be prioritized in the production schedule?

• Product A

• All products equally

• Product B

• Product C

What is the total contribution from Product A?

• £244,200

• £446,400

• £429,000

• £573,800

What is a potential disadvantage of using a new supplier?

• Increased reliability

• Improved quality

• Better trade discounts

• Higher costs