The product with the highest contribution margin per scarce resource is the most profitable.

Name: The product with the highest contribution margin per scarce resource is the most profitable.
Brand: Quizplus
Rating: 4.9 (31 reviews)

Question

Quizplus · Accepted Answer

The contribution margin per scarce resource indicates how much profit is earned for each unit of limited resource used in production. Therefore, if a product has a higher contribution margin per scarce resource, it means that it is more profitable as it generates more profit for each unit of scarce resource used.

The Product with the Highest Contribution Margin Per Scarce Resource