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The decision for solving production mix problems involving multiple products and scarce
production resources should focus on:
gross profit of each product.
sales price of each product.
contribution margin per unit of scarce resource.
contribution margin of each product.
Solution
Answer is C (contribution margin per unit of scarce resource)
Reason: When a resource is scarce, it is to be made sure that maximum possible contribution is
derived from each unit of that resource in order to get maximum possible profits.

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  • 1. The decision for solving production mix problems involving multiple products and scarce production resources should focus on: gross profit of each product. sales price of each product. contribution margin per unit of scarce resource. contribution margin of each product. Solution Answer is C (contribution margin per unit of scarce resource) Reason: When a resource is scarce, it is to be made sure that maximum possible contribution is derived from each unit of that resource in order to get maximum possible profits.