业务功能成本知识分享.pptVIP

Only Model 14 should be produced. Management should choose the product mix that maximizes operating income for a given production capacity (the scarce resource in this situation). Notice Model 14 will yield a $9.50 contribution to fixed costs per machine hour, and Model 9 will yield $9.00 Adding or Dropping Customers Similarly, if the cost object is a customer, companies must make decisions about adding or dropping customers or a branch office. Decision Rule: Does adding or dropping a customer add operating income to the firm? Yes – add or don’t drop No – drop or don’t add Decision is based