Saska Corporation has four different products that use the same constrained resource.Data concerning those products appear below: The company does not have enough of the constrained resource to satisfy for demand of all four products.From the standpoint of the entire company,if it is a choice between sales of one unit of one product versus another,which product should the salespersons emphasize?
A)B100
B)B300
C)B200
D)B400

Question

Saska Corporation has four different products that use the same constrained resource.Data concerning those products appear below:  The company does not have enough of the constrained resource to satisfy for demand of all four products.From the standpoint of the entire company,if it is a choice between sales of one unit of one product versus another,which product should the salespersons emphasize?
A)B100 
B)B300 
C)B200 
D)B400

Quizplus · Accepted Answer

To determine which product the salespersons should emphasize, we need to calculate the contribution margin per unit of the products. The contribution margin per unit is calculated by subtracting variable costs from the selling price.

The contribution margin per unit for each product is as follows:

- B100: $80 - $50 = $30
- B200: $120 - $70 = $50
- B300: $90 - $60 = $30
- B400: $100 - $80 = $20

Therefore, the product with the highest contribution margin per unit is B200. This means that selling one unit of B200 generates the highest amount of profit for the company. Thus, salespersons should emphasize the sales of B200 over the other three products.

Saska Corporation Has Four Different Products That Use the Same