In the Situation Where a Firm Produces Multiple Products and Has

Multiple Choice

In the situation where a firm produces multiple products and has a single resource constraint (e.g., machine hours) , the most profitable use of available capacity (machine hours) requires that we assess:

A) The contribution margin per unit of each product.
B) The selling price per unit for each product.
C) Non-production-related costs (e.g., selling costs) associated with each product.
D) The contribution margin of each product per machine hour.
E) The gross profit per unit of each product per machine hour.