If the ability to sell and the amount of production facilities devoted to each of two products is equal,it is profitable to increase the sales of that product with the lowest contribution margin.

Question

Quizplus · Accepted Answer

Increasing sales of the product with the higher contribution margin would be more profitable because the contribution margin represents the per-unit profit before fixed costs, meaning more profit is generated per unit sold.

If the Ability to Sell and the Amount of Production