The same constrained resource is used by four different products at Hinchcliffe Corporation.Data concerning those products appear below: The company does not have enough of the constrained resource to satisfy for demand of all four products. If salespersons are paid commissions that are a set percentage of sales, which product would they prefer to sell? In other words, if it is a choice between selling one unit of one product and one unit of another, which product would they prefer to sell?
A)I100
B)I200
C)I300
D)I400

Question

The same constrained resource is used by four different products at Hinchcliffe Corporation.Data concerning those products appear below:  The company does not have enough of the constrained resource to satisfy for demand of all four products. If salespersons are paid commissions that are a set percentage of sales, which product would they prefer to sell? In other words, if it is a choice between selling one unit of one product and one unit of another, which product would they prefer to sell?
A)I100 
B)I200 
C)I300 
D)I400

Quizplus · Accepted Answer

If paid a commission that is a set percentage of sales, the salespersons will prefer to sell the product with the highest unit selling price, which is I400.

The Same Constrained Resource Is Used by Four Different Products