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11) Which of the following statements is true? 1.When a company has a production constraint, total contribution margin will be maximized by emphasizing the products
11) Which of the following statements is true?
1.When a company has a production constraint, total contribution margin will be maximized by emphasizing the products with the highest contribution margin per unit of the constrained resource.
2.When a company has a production constraint, the product with the lowest contribution margin per unit of the constrained resource should usually be given highest priority.
A) Only statement I is true.
B) Only statement II is true.
C) Both statements are true.
D) Neither statement is true.
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