1. The problem asks which metric a company should prioritize in constrained optimization. 2. Constrained optimization involves maximizing profit or contribution margin given limited resources. 3. The key formula is Contribution Margin (CM) per unit of scarce resource: $$\text{CM per unit of scarce resource} = \frac{\text{CM per unit}}{\text{units of scarce resource required}}$$ 4. This metric shows how much contribution margin is generated per unit of the limiting factor, helping prioritize products that yield the highest return on scarce resources. 5. Therefore, the company should prioritize the product with the highest CM per unit of scarce resource. 6. The next problem asks about joint costs in a split-off decision. 7. Joint costs are costs incurred up to the split-off point where multiple products are produced simultaneously. 8. These costs are sunk and cannot be avoided by choosing one product over another after the split-off. 9. Hence, joint costs are irrelevant to the decision of whether to process further or sell at split-off. 10. The correct classification is that joint costs are irrelevant in split-off decisions. Final answers: - Prioritize product with highest CM per unit of scarce resource. - Joint costs in split-off decisions are irrelevant.