A. Since the company can sell all the product it can produce, the limiting factor is the use of scarce resources (machine hours). The segment margin does not tell us anything about the profitability of products on the basis of how much of the scarce resource each requires.
B. The contribution margin per machine hour will indicate which product generates the most profit per unit of the scarce resource (machine hours). The company will maximize its profitability by producing those products that have the greatest contribution margin per scarce resource.
C. Since the company can sell all the product it can produce, the limiting factor is the use of scarce resources (machine hours). The gross margin does not tell us anything about the profitability of products on the basis of how much of the scarce resource each requires.
D. The contribution margin ratio is useful only if it is put into sales dollars. It is possible that a higher ratio, lower volume product could be unprofitabl 
