United Industries manufactures a number of products at its highly automated factory. The products are very popular, with demand far exceeding the factory's capacity. To maximize profit, management should rank products based on their

A. Gross marginB. Contribution marginC. Selling priceD. Contribution margin per unit of the constrained resource

D. Contribution margin per unit of the constrained resource

Explanation:

It should produce base on the limited resource.

For example: let's suppose the scarce resourse is 1,000

If a product generates 100 contribution margin per unit

but 10 contribution per scarce resource

while other generates 50 contribution margin per unit

but his contribution per scarce resource is 25

It will be a better deal to produce as much of this second product as possible.

because Product A 1,000 x 10 = 10,000 contribution margin

while Product B 1,000 x 25 = 25,000 contribution margin