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When Assessing Profitability When There Are Resource Limitations Which Statement

Question 55

Multiple Choice

When assessing profitability when there are resource limitations which statement is not correct?


A) For some businesses sales are not limited by market demand but by production limitations
B) The most profitable result will be to maximise production of the product with the highest contribution margin per unit of the limiting factor
C) The most profitable result will be to minimise production of the product with the highest overall contribution margin
D) Limiting factors could relate to labour,space,materials or equipment

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