When multiple products share a constrained resource,the way to allocate the resource is to compute the
A)Contribution per unit.
B)Contribution margin per constrained resource.
C)Opportunity cost per unit.
D)None of these ans choices are correct.

Question

Quizplus · Accepted Answer

When multiple products share a constrained resource, the best way to allocate the resource is by computing the contribution margin per constrained resource. This approach ensures that the resource is allocated to the product that provides the highest contribution margin per unit of constrained resource used. By doing so, the company can optimize its profits and make the most efficient use of its limited resources.

When Multiple Products Share a Constrained Resource,the Way to Allocate