In making product mix decisions under constraining factors,which of the following is the key to choosing the product type to be maximized?

Question

Quizplus · Accepted Answer

When making product mix decisions under constraining factors, it is important to consider the contribution margin per unit of the constraining factor. This helps in identifying the product type that generates the highest contribution margin while using limited resources efficiently. Therefore, choice C is the best option. Revenue per unit and gross profit per unit using traditional costing do not take into account the limited resources available, and may not maximize the overall profitability of the product mix.

In Making Product Mix Decisions Under Constraining Factors,which of the Following