Where Several Products Are Produced and There Is a Scarce

question 10

Multiple Choice

Where several products are produced and there is a scarce factor, the rule for deciding on the optimum product mix is:

• A) produce equal quantities of all products.
• B) produce as much as can be sold of the product with the highest contribution margin per unit of scarce factor and use any remaining resource to produce the product with the next highest contribution margin per unit of scarce factor etc.
• C) produce only the product with the highest contribution margin.
• D) produce only the product with the highest contribution margin per unit of scarce factor.

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Definitions:

I/O Modules

Hardware components in a control system that interface with external devices; they facilitate input and output operations between the processor and the peripherals.

Slot Or Connector

components in electronics and computing used for connecting different parts, like a memory card to a motherboard or a cable to a port.

Memory

Memory in computing refers to devices or systems that are used to store information for immediate use in a computer or related computer hardware and digital electronic devices.

Control Plan

A detailed document that describes the actions necessary to maintain process control and product quality for manufacturing or service operations.