Which product would be selected in a decision that involves the utilization of a constrained resource?
A) the product with the lowest total cost per unit.
B) the product with the lowest variable cost per unit.
C) the product that uses the least amount of constrained resource per unit.
D) the product with the highest contribution margin per unit.
E) the product with the highest contribution margin per unit of the constrained resource.

Question

Quizplus · Accepted Answer

The product with the highest contribution margin per unit of the constrained resource is the best choice when making a decision involving the utilization of a constrained resource. This will ensure that the resource is used efficiently to generate the highest possible revenue, taking into account the limitations of the resource.

Which Product Would Be Selected in a Decision That Involves