If sales revenues are used in the denominator in the profitability index for a product then:
A)the company has no constraint.
B)total sales should be the company's constraint.
C)the selling price of the product in question is the company's constraint.
D)selling effort should be the company's constraint.

Question

Quizplus · Accepted Answer

Total sales should be the company's constraint because sales revenues are used in the denominator in the profitability index for a product.

If Sales Revenues Are Used in the Denominator in the Profitability