United Industries manufactures a number of products at its highly automated factory. the products are very popular, with demands far exceeding the factory's capacity. To maximize profit, management should rank products based on their:

a. Gross margin
b. Contribution margin
c. Selling price
d. Contribution margin per unit of the constrained resource

Respuesta :

Answer:

The correct answer is letter "D": Contribution margin per unit of the constrained resource.

Explanation:

The contribution margin per unit of constraint is obtained by dividing the units of constrained resources needed to make one unit of that product. A business owner might use this technique to decide which product's costs should be reduced or which price should be increased. It allows a company to determine the profitability of individual products by measuring how sales affect profits.