When a company has a limited resource


Question:

When a company has a limited resource, it should apply additional capacity of that resource to providing more units of the product or service:

(a) that has the highest contribution margin.

(b) that has the highest selling price.

(c) that has the highest gross profit.

(d) that has the highest contribution margin per unit of that limited resource.

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Accounting Basics: When a company has a limited resource
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