In a plant operating at capacity:
A) every machine and person in the plant is working at the maximum possible rate.
B) only some specific machines or processes are operating at the maximum rate possible.
C) profits are maximized.
D) managers should produce those products with the highest contribution margin in order to deal with the constrained resource.

Question

Quizplus · Accepted Answer

In a plant operating at capacity, only some specific machines or processes are operating at the maximum rate possible while other processes may have limitations.

Answer: D 
 To deal with the constrained resource, managers should produce those products with the highest contribution margin. This ensures maximum profits even in a plant operating at full capacity.

In a Plant Operating at Capacity