Question

When a multi-product factory operates at full capacity, decisions must be made about which products to emphasize. In making such decisions, products should be ranked based on: Group of answer choices

Answer 1

Group of answer choices

A. selling price per unit contribution.

B. margin per unit contribution

C. margin per unit of the constraining resource.

D. unit sales volume

Answer:

C. contribution margin per unit of the constraining resource.

Step-by-step explanation:

When a multi-product factory operates at full capacity, decisions must be made about which products to emphasize. In making such decisions, products should be ranked based on contribution margin per unit of the constraining resource.