When resources are constrained, managers should emphasize products and services that maximize the contribution margin per unit of constrained resource.

Question

Quizplus · Accepted Answer

When resources are limited, it is important to focus on products or services that generate the most profit per unit of the scarce resource. This can help maximize profitability and efficiency in the face of constraints. This concept is known as "contribution margin per unit of constrained resource."

When Resources Are Constrained, Managers Should Emphasize Products and Services