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.
Correct Answer:
Verified
Correct Answer:
Verified
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