Multiple Choice QuestionWhen resources are constrained and products use different inputs, the company should produce the product with the:Multiple choice question.highest contribution marginhighest sales pricelowest variable cost per input unithighest contribution margin per unit of constrained resource

Multiple Choice QuestionA company produces two products. Product A sells for $25, has variable costs of $15, and requires 2 machine hours to produce. Product B sells for $35, has variable costs of $20, and requires 5 machine hours to produce. 40,000 machine hours are available. The company can sell all it can make of either product. Which statement is true?Multiple choice question.Product A should be produced because it will provide greater contribution margin per machine hour.Production should be split between Product A and Product B.Product B should be produced because it will provide greater contribution margin per machine hour.Product A should be produced because it has a lower cost than Product B.

Multiple Choice QuestionImprovements in the quality of a variable resource increase Blank______ and therefore its demand.Multiple choice question.costsmarginal productivityqualityresource supplymarginal supply

Multiple Choice QuestionThe purchase price for each of the inputs required to produce a good or service is referred to in economics as Blank______.Multiple choice question.materials resource planningresource pricingsupply chain managementcost accounting

Multiple Choice QuestionIt will be profitable for a firm to hire additional units of a resource up to the point at which that resource's Blank______ is equal to its Blank______.Multiple choice question.total revenue product; total resource costmarginal revenue product; marginal resource costmarginal revenue product; marginal revenue costmarginal revenue product; total resource cost

Multiple Choice QuestionA contribution margin income statement shows:Multiple choice question.sales-cost of goods soldvariable costs - salessales-fixed costssales-variable costs