Gatsby is evaluating whether it may have a skilled labor constraint; that is, no

Question

Gatsby is evaluating whether it may have a skilled labor constraint; that is, not enough skilled labor to handle all of the production for two product lines. All of the following are considerations of the product mix to be produced except?

1Which products offer the highest contribution margin per unit of the constraint?

2Does a skilled labor constraint affect the amount of units of each product line that can be sold to the same degree?

3Which product has the most sunk investment costs?

4Would emphasizing one product over another affect fixed costs?

5Will the product mix ratio remain the same?

Explanation / Answer

3 Which product has the most sunk investment costs?

is not a consideration of the product mix to be produced

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