A plant applies the theory of constraints. A single machine is the bottleneck. Data per unit: Alpha: price $120, direct materials $50, bottleneck time 5 minutes Beta: price $90, direct materials $30, bottleneck time 3 minutes Gamma: price $150, direct materials $60, bottleneck time 8 minutes All other costs are fixed in the short run. To maximize throughput, which product should receive priority on the bottleneck?

Correct answer: B) Beta, with throughput contribution of $20.00 per bottleneck minute

Explanation

Under the theory of constraints, throughput contribution = selling price - direct materials, and products are ranked by throughput per unit of the constrained resource. Alpha: ($120 - $50) / 5 = $14.00 per minute; Beta: ($90 - $30) / 3 = $20.00 per minute; Gamma: ($150 - $60) / 8 = $11.25 per minute. Beta earns the most per bottleneck minute, so it should be prioritized.