To maximize profits, produce the product with the lowest contribution margin per unit of the constraint.

Name: To maximize profits, produce the product with the lowest contribution margin per unit of the constraint.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

To maximize profits, it is important to produce the product with the highest contribution margin per unit of the constraint. This is known as the bottleneck product and producing more of it will lead to the highest increase in profits.

To Maximize Profits, Produce the Product with the Lowest Contribution