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Jaimie Adams
on Oct 10, 2024

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Payment of overtime to a worker in order to relax a production constraint could increase the profits of a company.

Overtime

Extra hours worked beyond the regular working schedule, often compensated at a higher pay rate.

Production Constraint

A limitation or bottleneck in the production process that restricts output, efficiency, or the utilization of resources.

Profits

The financial gain achieved when the revenues from business operations exceed the expenses, costs, and taxes involved in sustaining the operation.

  • Comprehend the idea of contribution margin and its use in decision-making related to production restrictions.
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Ashleigh JenningsOct 12, 2024
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