In making product mix decisions,when fixed costs are irrelevant,a company should emphasize the product with the highest contribution margin per unit of the constraint.

Question

Quizplus · Accepted Answer

When fixed costs are irrelevant and there is a constraint, such as limited resources or production capacity, a company should prioritize products with the highest contribution margin per unit of the constraint. This allows the company to maximize its profits by maximizing the use of the constrained resource.

In Making Product Mix Decisions,when Fixed Costs Are Irrelevant,a Company