Cornerstones of Managerial Accounting 4th Edition by Maryanne Mowen, Don Hansen, Dan Heitger

Exercise 50

When a company faces a production constraint or scarce resource (e.g., only a certain number of machine hours are available), it is important to
A) produce the product with the highest contribution margin in total.
B) produce the product with the lowest full manufacturing cost.
C) produce the product with the highest contribution margin per unit of scarce resource.
D) produce the product with the highest contribution margin per unit.
E) The constraint is not relevant to the production problem.