Prioritize by contribution per limiting resource

Steps:

• Identify the limiting factor: labor hours.
• Calculate contribution margin per unit for each product (selling price minus variable costs).
• Determine labor hours required per unit for each product.
• Rank products by highest contribution margin per labor hour; produce the top-ranked first.

Why C is correct:

• Product C has the highest contribution per labor hour, maximizing profit under the constraint per limiting factor analysis.

Why the others are wrong:

• A has lower contribution per labor hour than C, yielding less profit per constrained resource.
• B has lower contribution per labor hour than C, yielding less profit per constrained resource.
• D has lower contribution per labor hour than C, yielding less profit per constrained resource.

Final answer: C