Answer the following question(s)using the information below.Specialty Wheels Ltd.manufactures three different product lines, Model X, Model Y, and Model Z.Considerable market demand exists for all models.The following per unit data apply:

-The greatest possible contribution margin per unit of the constraining factor will ensure which of the following?
A)minimum total variable costs
B)zero imputed costs
C)minimum fixed cost per unit of production
D)minimum variable costs per unit of production
E)maximum operating income

Question

Answer the following question(s)using the information below.Specialty Wheels Ltd.manufactures three different product lines, Model X, Model Y, and Model Z.Considerable market demand exists for all models.The following per unit data apply:
 
-The greatest possible contribution margin per unit of the constraining factor will ensure which of the following?
A)minimum total variable costs 
B)zero imputed costs 
C)minimum fixed cost per unit of production 
D)minimum variable costs per unit of production 
E)maximum operating income

Quizplus · Accepted Answer

To maximize operating income, we need to choose the product with the highest contribution margin per unit of the constraining factor. This is because the contribution margin represents the amount of revenue available to contribute towards covering fixed costs and generating profit. By choosing the product with the highest contribution margin per unit of the constraining factor, we can maximize the amount of revenue available to cover fixed costs and generate profit, resulting in the maximum operating income.

Answer the Following Question(s)using the Information Below