Which of the Following Statements Is Correct When Assessing Profitability

question 23

Multiple Choice

Which of the following statements is correct when assessing profitability with resource limitations?

• A) Most businesses are not limited by market demand.
• B) The most profitable result will be to maximise production of the product with the highest contribution margin per unit of the limiting factor.
• C) The most profitable result will be to minimise production of the product with the highest overall contribution margin.
• D) Limiting factors only relate to labour hours.

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