If the limiting factor is demand i.e., unit of sales), the more profitable product is the one with the higher contribution per unit.

Name: If the limiting factor is demand i.e., unit of sales), the more profitable product is the one with the higher contribution per unit.
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Question

Quizplus · Accepted Answer

If demand is the limiting factor, it means that both products cannot be sold beyond a certain point. In such a scenario, the product with a higher contribution per unit will generate more profit for the company.

If the Limiting Factor Is Demand I