Management should focus its sales and production efforts on the product or products that will provide
A) the highest sales revenue
B) the lowest product costs
C) the maximum contribution margin
D) the lowest direct labor hours

Question

Quizplus · Accepted Answer

The maximum contribution margin is the amount of revenue left after deducting variable costs. Therefore, focusing on the product or products with the highest contribution margin will generate the most profits for the company.

Management Should Focus Its Sales and Production Efforts on the Product