Which of the following formulas is used to calculate the unit contribution margin per production constraint?

a.Unit selling price / Unit contribution margin

b.Unit variable cost / Production constraint per unit

c.Unit contribution margin / Production constraint per unit

d.Unit contribution margin / Unit selling price

Which of the following is true of the demand-based concept?

a.Under the demand-based concept, if there is a high demand for a product, then the price is set high.

b.Under the demand-based concept, if a competitor reduces the price, then management reduces the price to meet the competition.

c.Under the demand-based concept, if there is a low demand for a product, then the price is set high.

d.Under the demand-based concept, if a competitor increases the price, then management increases the price to meet the competition.

Which of the following is the first step in the managerial decision-making process?

a.Reviewing the results of the decision

b.Identifying the objective of the decision

c.Identifying the alternative courses of action

d.Gathering relevant information

When a company has a production constraint in its production process, it _____.

a.should attempt to maximize its profits, subject to the constraint

b.should attempt to maximize its differential costs, subject to the constraint

c.should attempt to maximize its opportunity costs, subject to the constraint

d.should attempt to maximize its sunk costs, subject to the constraint