Which product would be selected in a decision that involves the utilization of a constrained resource? a. The product with the lowest total cost per unit b. The product with the lowest variable cost per unit c. The product that uses the least amount of constrained resource per unit d. The product with the highest contribution margin per unit e. The product with the highest contribution margin per unit of the constrained resource Solution Assume that Nestle makes 2 types of wheat based instant noodles, but has constrained resource in terms of availability of wheat. In other words, the availability of wheat is limited and it cannot produce all it wants of the 2 types of noodles The company will try and make that instant noodle which will maximize its profits. Profit is a function of 2 variables - revenue and cost. Thus a product involving utilization of a constrained resource will look at revenue and costs. Contribution margin = selling price - variable costs. The product which gives the highest margin (measure of profitability) per unit of constrained resource used should be produced the maximum. Hence the answer is option \"e\" - The product with the highest contribution margin per unit of the constrained resource. .