when you have a limited resource (such as machine hours) and you have to choose which product to make, should you choose the one that has the higher or lower contribution margin per unit?

choose the one that has the HIGHER contribution margin per unit More test answers on https://studyhippo.com/chapter-6-managerial-accounting-test-2-56926/

When a company has a production constraint, total contribution margin will be maximized by emphasizing the products with the lowest contribution margin per unit of the constrained resource.

False More test answers on https://studyhippo.com/accounting-test-2/

Operating Income formula using contribution margin per unit

[Contribution margin per unit x #of units sold] – Fixed Expenses More test answers on https://studyhippo.com/managerial-accounting-chapter-2-3-contribution-margin-analysis-56962/

Contribution Margin & Contribution margin per unit formulas

Contribution margin = Sales revenue – Total variable expenses Contribution margin per unit = sales price per unit – Variable cost per unit More test answers on https://studyhippo.com/managerial-accounting-chapter-2-3-contribution-margin-analysis-56962/

Formula for contribution margin per unit

Unit selling price- Unit variable costs More test answers on https://studyhippo.com/cost-volume-profit-analysis-ch-18/

highest contribution margin per unit of scarce resources

when production facilities are limited, the company should produce the mix that will not exceed demand and maximize the production of the product with the: More test answers on https://studyhippo.com/acct-212-hw-7-ch-10/

Which of the following is true regarding the contribution margin ratio of a single product company? – As fixed expenses decrease, the contribution margin ratio increases. – The contribution margin ratio multiplied by the variable expense per unit equals the contribution margin per unit. – If sales increase, the dollar increase in net operating income can be computed by multiplying the contribution margin ratio by the dollar increase in sales. – The contribution margin ratio increases as the number of units sold increases.

If sales increase, the dollar increase in net operating income can be computed by multiplying the contribution margin ratio by the dollar increase in sales. More test answers on https://studyhippo.com/acctg-test-2/

Other variable costs per unit subtracted from Total COGS per unit equals ________. A) Total other variable costs per unit B) Contribution margin per unit C) Cost of goods sold per unit D) Operating profit per unit

B More test answers on https://studyhippo.com/mgt-3111-ch-12/

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