United Industries manufactures three products at its highly automated factory. The products are very popular, with demand far exceeding the company’s ability to supply the marketplace. To maximize profit, management should focus on each product’s

Answer (D) is correct.
When demand far exceeds a company’s ability to supply the marketplace, management will want to maximize its profits per unit of scarce resource. If the scarce resource is raw materials, the products that provide the greatest contribution margin per unit of raw materials are the products to emphasize. If machine hours are the constraint, profits are maximized by emphasizing the contribution margin per machine hour.