When a company has a production constraint,the product with the highest contribution margin per unit of the constrained resource should be given highest priority.

Question

Quizplus · Accepted Answer

The production constraint limits the amount of resources that can be used for production. Therefore, to maximize profits, the product with the highest contribution margin per unit of the constrained resource should be prioritized as it generates the most revenue per unit of the limited resource.

When a Company Has a Production Constraint,the Product with the Highest