When resources are constrained, managers should emphasize the product with the:
A) Highest contribution margin per unit
B) Highest contribution margin per unit of constrained resource
C) Lowest average cost
D) Largest market share

Question

Quizplus · Accepted Answer

When resources are constrained, managers should prioritize the product with the highest contribution margin per unit of constrained resource. This ensures that the limited resources are being utilized in the most efficient and profitable manner. Emphasizing products with the highest overall contribution margin per unit or the lowest average cost may not be as effective if those products also require a significant amount of the constrained resource. Similarly, focusing on market share alone may not provide the best return on investment when resources are limited.

When Resources Are Constrained, Managers Should Emphasize the Product with The