multiple choice question\nwhen resources are constrained and products use different inputs, the company…

multiple choice question\nwhen resources are constrained and products use different inputs, the company should produce the product with the:\nlowest variable cost per input unit\nhighest sales price\nhighest contribution margin per unit of constrained resource\nhighest contribution margin\nneed help? review these concept resources.\nread about the concept

multiple choice question\nwhen resources are constrained and products use different inputs, the company should produce the product with the:\nlowest variable cost per input unit\nhighest sales price\nhighest contribution margin per unit of constrained resource\nhighest contribution margin\nneed help? review these concept resources.\nread about the concept

Answer

Brief Explanations:

When resources are constrained, to maximize profit, a company should focus on the product that generates the most contribution margin per unit of the constrained resource. This helps in making the best - use of the limited resource available. A high sales price doesn't necessarily mean high profit if it requires a large amount of the constrained resource. Low variable cost per input unit doesn't account for the overall contribution considering the constraint. And just looking at the highest contribution margin without considering the resource constraint is not optimal.

Answer:

C. highest contribution margin per unit of constrained resource