The Contribution Margin Per Unit of Constraint Is Calculated as

question 129

Multiple Choice

The contribution margin per unit of constraint is calculated as

• A)contribution margin per unit × constraint per unit.
• B)contribution margin per unit × units per constraint.
• C)contribution margin per unit ÷ units per constraint.
• D)contribution margin per unit + constraint per unit.

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Definitions:

Least-cost Combination

An economic principle where businesses aim to produce a given level of output at the minimum possible cost by appropriately combining resources.

Inputs

Resources such as labor, materials, and capital that are used in the production process to create goods or provide services.

Substitutability

The degree to which one product can be replaced by another in the eyes of the consumer.

Derived Demand

The demand for a factor of production or input resulting from the demand for the output that input produces.