Question

When a multi-product plant is being operated at capacity, the products that should be emphasized are those that provide the highest contribution margin:_______.

a. ratio.
b. per sales dollar.
c. per unit of product.
d. per unit of the limited resource.

Answer 1

Answer: per unit of the limited resources.

Step-by-step explanation:

When a multi-product plant is being operated at the full capacity, it is necessary for the manager that is in charge of the multi-product plant to select the products that provide the highest contribution margin per unit of the limited resources.

This is typically a short run decision and helps to know which product to emphasize.