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DJ Corporation Has a Limited Number of Labor Hours Available

Question 45

Multiple Choice

DJ Corporation has a limited number of labor hours available for monthly production purposes.
What should DJ's strategy be in order to maximize its monthly operating income?


A) DJ should produce the products with the highest gross margin per unit.
B) DJ should produce the products with the highest contribution margin per unit.
C) DJ should hire additional laborers as long as the hourly labor cost is less than the
Sales revenue generated as a result of working an additional hour.
D) DJ should produce the products with the highest contribution margin per labor hour.

Correct Answer:

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