In resource utilization decisions, managers should:

Question

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Resource utilization decisions involve determining the most effective way to use limited resources in order to maximize profits. Therefore, managers should aim to maximize the contribution margin per unit of the scarce resource. This will ensure that the company is using its resources in the most profitable way possible, and will help to maximize overall profitability. Minimizing the contribution margin per unit or the use of the scarce resource would not be in the best interest of the company. Maximizing the contribution margin per unit without taking into account the scarcity of resources could result in inefficient use of resources, which may ultimately harm the company's bottom line.

In Resource Utilization Decisions, Managers Should