If there are limited resources,the greatest profit can be earned by:
A) minimising production of the product with the highest contribution margin per unit of the limiting factor.
B) maximising production of the product with the lowest contribution margin per unit of the limiting factor.
C) maximising production of the product with the highest contribution margin per unit of the limiting factor.
D) none of the options are true.

Question

Quizplus · Accepted Answer

Maximising production of the product with the highest contribution margin per unit of the limiting factor ensures that the limited resources are being used efficiently to generate the highest profit possible.

If There Are Limited Resources,the Greatest Profit Can Be Earned