When faced with a limited availability of machine-hours, management should consider producing those products which:
A) Have the highest contribution margin per unit.
B) Have the highest contribution margin ratios.
C) Require the fewest machine-hours to produce.
D) Contribute the highest contribution margin per machine-hour.

Question

Quizplus · Accepted Answer

Management should prioritize products that provide the highest contribution margin per machine-hour to maximize profitability given the constraint of limited machine-hours.

When Faced with a Limited Availability of Machine-Hours, Management Should