When constrained by a limiting resource, managers often seek to produce those products which have:
A) The highest selling prices.
B) The lowest average cost per unit.
C) The highest contribution margin per unit of limiting resource.
D) The highest contribution margin ratios.

Question

Quizplus · Accepted Answer

Managers aim to maximize the contribution margin per unit of the limiting resource to optimize profitability when resources are constrained.

When Constrained by a Limiting Resource, Managers Often Seek to Produce