The traditional method of making product mix decision considersA.producing the products with the highest contribution margins fi
rst.B.not producing products that have a large capacity impact on the bottleneck.C.producing products that have a large capacity impact on the bottleneck first.D.not producing the products with the lowest contribution margins at all.producing the products with the highest contribution margins first
The correct answer is letter "A": producing the products with the highest contribution margins first.
Explanation:
A product mix refers to the different assets a company may posses in its portfolio. Those products or services are usually similar or satisfy almost the same need. They are measured according to their width, length, depth, and consistency. The product mix avoids that the company relies on a single product or service as a source of income. Besides, the product or service with the fastest and highest revenues is the one to be produced first.
