Managerial Accounting

Free Version

Upgrade subject to access all content

Easy

Strategy To Use Constrained Resource

MGRACT-EKBDSK

When some input — typically materials or labor — is constrained, a firm should attempt to maximize profits by concentrating on making which of these elements as large as possible?

A

Contribution margin per unit

B

Contribution margin per unit of constrained resource

C

Total sales revenue per unit

D

Total variable cost per units