In making product mix decisions under constraining factors,which of the following is the key to choosing the product type to be maximised?

Question

Quizplus · Accepted Answer

Contribution margin per unit of the constraining factor is the key factor to consider in making product mix decisions under constraining factors. This is because it indicates the profitability of each unit relative to the limiting factor. By maximizing the contribution margin per unit of the constraining factor, the company can make the most efficient use of its resources and generate the highest possible profit.

In Making Product Mix Decisions Under Constraining Factors,which of the Following