When there is a production constraint, a company should emphasize the products w
ID: 2432679 • Letter: W
Question
When there is a production constraint, a company should emphasize the products with:
the highest unit contribution margins.
the highest contribution margin ratios.
the highest contribution margin per unit of the constrained resource.
the highest contribution margins and contribution margin ratios.
a.the highest unit contribution margins.
b.the highest contribution margin ratios.
c.the highest contribution margin per unit of the constrained resource.
d.the highest contribution margins and contribution margin ratios.
Explanation / Answer
c. the highest contribution margin per unit of the constrained resource.
When there is a production constraint, a company should emphasize the products with the highest contribution margin per unit of the constrained resource.
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