Bottlenecks and Product Mix: Deciding Under Capacity Limits (Ch 9, Pt 3)

Chapter 9, Part 3 of Managerial Accounting. When capacity is tight, the obvious answer is usually wrong. This part covers product mix under constraints, the Theory of Constraints, and the add-or-drop customer decision. In this video you will learn: Why contribution margin per unit is the wrong test under a constraint Contribution margin per unit of the constraining resource, the right test The Theory of Constraints and how to manage a bottleneck Worked product-mix decision under a binding capacity limit Customer-level relevant-cost analysis: drop, add, close, open How fixed costs behave when you actually drop a customer or a branch This builds on Parts 1 and 2 and sets up Part 4 (equipment replacement and joint costs). Who this is for: MHA and MBA students, healthcare operations leaders, finance professionals, exam reviewers. Series: Managerial Accounting: Decision Making and Motivating Performance. Source textbook: Datar, S. M., & Rajan, M. V. Managerial Accounting: Decision Making and Motivating Performance (Pearson). This series is independent study material based on the textbook and is not affiliated with the publisher. Subscribe to Mastering MHA MBA for the full Managerial Accounting series, plus health economics, healthcare strategy, and exam prep for MHA and MBA programs. #ManagerialAccounting #TheoryOfConstraints #ProductMix #MHA #MBA