Question

In deciding which product lines to emphasize when a production constraint​ exists, the company should focus on the product line that has the highest

A. contribution margin per unit of product.
B. profit per unit of product.
C. contribution margin ratio.
D. contribution margin per unit of the constraint.

Answer 1

D, contribution margin per unit of the constraint.

Step-by-step explanation:

Contribution margin is the price of a product after all variable costs have been deducted, which results in profit earning.

when there is a constraint in resources in the manufacturing of products, it is best to manufacture a product that has the highest contribution margin per unit of the constraint.

cheers.