When operating in a constrained environment, which products should be produced?

Question

Quizplus · Accepted Answer

When operating in a constrained environment, it is best to produce products with the highest contribution margin per unit of the constrained process. This is because the constraint limits the production capacity, and by producing products with the highest contribution margin per unit of the constrained process, the company can maximize its profits as well as the utilization of the constrained resources. Therefore, option B is the best choice.

When Operating in a Constrained Environment, Which Products Should Be