If machine hours are a constraining factor,the product with the highest contribution margin per machine hour should be prioritized in production.Managers should maximize the contribution margin earned per amount of constrained resource.

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Quizplus · Accepted Answer

This statement is true. Prioritizing the product with the highest contribution margin per machine hour will help maximize profits and efficiently use the constrained resource.

If Machine Hours Are a Constraining Factor,the Product with the Highest