Which of the Following Is the Key to Choose the Product

question 64

Multiple Choice

Which of the following is the key to choose the product type to be maximized, in making product mix decisions under constraining factors?

• A)revenue per unit
• B)contribution margin per unit of product
• C)contribution margin per unit of the constraining factor
• D)gross profit per unit using traditional costing

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Definitions:

Required Return

The smallest annual return percentage required to motivate persons or firms to allocate funds into a certain security or initiative.

Risk-Free Rate

The theoretical rate of return of an investment with zero risk, typically represented by government bonds.

Market Risk Premium

The additional profit that an investor predicts they will earn from a risky market portfolio as opposed to risk-free financial instruments.

Expected Return

The anticipated average return on an investment, taking into account all potential outcomes and their probabilities.