Which of the following is the key to choose the product type to be maximized, in making product mix decisions under constraining factors?

Question

Quizplus · Accepted Answer

The key to choosing the product type to be maximized in making product mix decisions under constraining factors is to consider the contribution margin per unit of the constraining factor. This is because the constraining factor is the limiting factor that affects the production of all products, and maximizing the contribution margin per unit of the constraining factor ensures that the company is using its resources efficiently and making the most profit. Therefore, the best choice is C, contribution margin per unit of the constraining factor.

Which of the Following Is the Key to Choose the Product