When a company has limited resources to manufacture products, it should manufacture those products which have the highest unit contribution margin.

Name: When a company has limited resources to manufacture products, it should manufacture those products which have the highest unit contribution margin.
Brand: Quizplus
Rating: 4.8 (50 reviews)

Question

Quizplus · Accepted Answer

A company should consider both the unit contribution margin and the resource constraints to maximize total contribution margin, not just focus on the highest unit contribution margin.

When a Company Has Limited Resources to Manufacture Products, It