Question

2. The decision maker should consider, in case of limiting factor to
maximize the Profit
b) Contribution
c) Variable cost d) Fixed cost
a) Sales​

Answer 1

Answer:

B) Contribution

Explanation:

Answer 2

Answer:

sales

Explanation:

When facing a limiting factor, a decision maker must consider various factors to maximize profits. One of the most critical factors is sales. Sales refer to the revenue generated from the sale of goods or services. A decision maker must determine the optimal level of sales that can be achieved given the constraint.

However, simply maximizing sales may not always result in maximum profit if the costs of production are high. Therefore, it is also essential to consider the variable costs associated with producing the goods or services. Variable costs are the costs that vary with the level of production. The decision maker should evaluate the contribution margin, which is the difference between the sales price and the variable cost per unit.

In addition to variable costs, fixed costs must also be considered. Fixed costs are those costs that do not vary with the level of production. A decision maker should aim to minimize fixed costs to improve profitability. Therefore, a decision maker must consider all these factors, including sales, variable costs, and fixed costs, while making decisions to maximize profit when facing a limiting factor.

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