In Making Product Mix Decisions Under Constraining Factors,which of the Following

question 7

Multiple Choice

In making product mix decisions under constraining factors,which of the following is the key to choosing the product type to be maximized?

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

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Definitions:

Conversion Premium

The additional cost over the current market value of a convertible security that an investor pays to have the option to convert it into a set number of shares.

Conversion Price

The predetermined price per share at which a convertible bond or preferred stock can be converted into common stock.

Current Price

The market value of a stock, bond, or commodity at which it can be bought or sold at a particular time.

Conversion Ratio

The number of shares an investor gets for converting a convertible security into common stock.