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When There Is a Constraint on How Many Units Can

question 88

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When there is a constraint on how many units can be produced, the focus shifts from contribution margin per unit to contribution margin per unit of the constraint.


Definitions:

Compliance

Partial success of an influence attempt by a leader: The person makes a modest effort.

Resistance

The state that occurs when an influence attempt by a leader is unsuccessful: The target is opposed to carrying out the request and finds ways to either not comply or do a poor job.

Good-natured Kidding

Light-hearted teasing or joking among individuals in a friendly and well-intentioned manner.

Straightforward Statement

A clear and uncomplicated expression or declaration, without ambiguity or complexity.

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