Select the highest rank product for KLM Private Limited by computing 'product return per minute'. Also, calculate Throughput Accounting (TA) ratio…

Calculation of Rank According to ‘Product Return per minute' Particulars A B C Selling Price (₹) 90 60 75 Variable Cost (₹) 40 20 30 Throughput Contribution (₹) 50 40 45 Minutes per unit 20 15 15 Contribution per minute (₹) 2.5 2.67 3 Ranking III II I Ranking Based on 'Throughput Accounting (TA) Ratio' Contribution per minute 2.50 2.67 3.00 Factory Cost per minute (2,70,000 / 1,20,000) 2.25 2.25 2.25 TA Ratio (Cont. per minute / Cost per minute) 1.11 1.18 1.33 Ranking Based on TA Ratio III II I Comment Product C yields more contribution compared to the contribution of Products A and B, after accounting for the factory cost per minute.