When there is a constraint on how many units can be produced, the focus shifts from contribution margin per unit to contribution margin per unit of the constraint.

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When there is a constraint on how many units can be produced, the focus shifts from maximizing total contribution margin to maximizing contribution margin per unit of the constraint. This is because the constraint limits the number of units that can be sold, so it is important to make the most profit per unit produced in order to maximize profits overall.

When There Is a Constraint on How Many Units Can