The Opportunity Cost of Using One Unit of the Constrained

Multiple Choice

The opportunity cost of using one unit of the constrained resource in a volume trade-off decision is equal to:

A) the profitability index for the company's most profitable existing product.
B) the profitability index for the company's least profitable product-even if none of the product is currently being made.
C) the profitability index for the product whose production would be cut back if necessary.
D) the profitability index of the product with the greatest sales.