162 to maximize profits produce the product with the lowest contribution margin per 4310305

162) To maximize profits, produce the product with the lowest contribution margin per unit of the constraint.

163) When making product mix decisions, companies are most profitable when they maximize production of the product with the greatest sales demand.

164) When making product mix decisions, companies are most profitable when they maximize production of the product with the greatest sales price.

165) All of the following are product mix considerations except

A) What constraint(s) stops us from making (or displaying) all of the units we can sell?

B) Which products offer the highest contribution margin per unit of the constraint?

C) Would emphasizing one product over another affect fixed costs?

D) Which product has the most sunk costs?

166) The contribution margin per unit of constraint is calculated as

A) contribution margin per unit × constraint per unit.

B) contribution margin per unit × units per constraint.

C) contribution margin per unit ÷ units per constraint.

D) contribution margin per unit + constraint per unit.

167) Companies with production constraints and irrelevant fixed costs will be most profitable when they maximize production of the product with the highest

A) sales price.

B) demand for the product.

C) contribution margin per unit of the constraint.

D) contribution margin per unit.

168) The factor that restricts production or sale of a product is which of the following?

A) Demanding factor

B) Constraint

C) Sunk factor

D) Relevant factor

169) A “constraint” is best described by which of the following?

A) The distribution of all products to be sold

B) A factor that restricts production or sales of a product

C) Benefits foregone by choosing a particular alternative course of action

D) Expected future costs that differ among alternatives

170) A “sales mix” is best described by which of the following?

A) A factor that restricts production or sales of a product

B) Costs that were incurred in the past and cannot be changed

C) Expected future costs that differ among alternatives

D) The relative number of all products to be sold

171) Which of the following could be a constraint for selling a product?

A) Store hours

B) Available labor hours for employees

C) Shelf space

D