Question

If a company's resources are limited with respect to output, the company should

A :
make the product with the highest profit margin per constrained resource.
B :
decrease the variable cost per unit of the constrained resource.
C :
make the product with the highest contribution per constrained resource.
D :
decrease the unit cost of the constrained resource.

Answer 1

To maximize profits when resources are limited, a company should focus on producing the product with the highest contribution per constrained resource.

Step-by-step explanation:

To maximize profits when a company's resources are limited, the company should produce the product with the highest contribution per constrained resource. This means that the company should focus on maximizing the profit contribution of each unit of the constrained resource.