When a Multi-Product Factory Operates at Full Capacity, Decisions Must

question 130

Multiple Choice

When a multi-product factory operates at full capacity, decisions must be made about which products to emphasize. In making such decisions, products should be ranked based on:

• A)selling price per unit
• B)contribution margin per unit
• C)contribution margin per unit of the constraining resource
• D)unit sales volume

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Definitions:

Equation

A formula expressing one mathematical quantity in terms of others, indicating equality under certain conditions.

Equation

An equation is a mathematical statement that asserts the equality of two expressions, typically containing one or more variables.

Center

In geometry, the central point of a circle or sphere, equidistant from all points on the perimeter or surface; in other contexts, it refers to a focal point or main area of activity.

Point

A location in space, often defined by its coordinates in a given dimension.