To determine the optimum output with one resource constraint the criteria should be
A) The highest contribution per product
B) The contribution per unit of constraint for each product
C) The highest profit per product
D) The lowest cost per product

Question

Quizplus · Accepted Answer

When there is a constraint on resources, it is important to make the most efficient use of that resource to maximize profits. The contribution per unit of constraint for each product helps to determine which products provide the highest return on investment for the limited resource. Therefore, B is the best choice. A is not the best choice because it only focuses on overall contribution without taking into account the resource constraint. C and D are also not the best choices because they do not consider the resource constraint at all.

To Determine the Optimum Output with One Resource Constraint the Criteria