To maximize profits,produce the product with the highest contribution margin per unit of the constraint.

Question

Quizplus · Accepted Answer

This statement is true as contribution margin per unit of the constraint represents the additional profit earned from producing an additional unit of a product within the constraints of limited resources. Hence, producing the product with the highest contribution margin per unit of the constraint would lead to maximum profits.

To Maximize Profits,produce the Product with the Highest Contribution Margin