To maximize net income in a situation involving scarce resources, a company should:

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When resources are scarce, it is important to use them in the most efficient way possible to maximize net income. Manufacturing products that generate the greatest overall contribution margin per unit of scarce resource ensures that the resources are being used effectively and efficiently. This approach will maximize the total contribution margin earned, which is an important factor in determining net income. A and C may not necessarily take into account the scarcity of resources or the variable costs involved, while D only focuses on variable costs and may not provide the highest contribution margin or net income.

To Maximize Net Income in a Situation Involving Scarce Resources