A company that is operating at full capacity should emphasize those products and services that have the:
A) lowest total per-unit costs.
B) highest contribution margin per unit.
C) highest contribution margin per unit of scarce resource.
D) highest operating income.
E) highest sales volume.

Question

Quizplus · Accepted Answer

When a company is operating at full capacity, it should prioritize products and services that have the highest contribution margin per unit of scarce resource. This approach ensures that the limited resources are utilized in the most profitable manner, maximizing overall profitability.

A Company That Is Operating at Full Capacity Should Emphasize