From the standpoint of the entire company, if it is a choice between sales of one unit of one product versus another, which product should the salespersons emphasize?
A)I200
B)I100
C)I300
D)I400

Question

Quizplus · Accepted Answer

The salespersons should emphasize the product that contributes the most to the company's profitability. This is typically determined by the product's contribution margin, which is the selling price minus the variable costs. Without specific financial data, we assume I200 has the highest contribution margin.

From the Standpoint of the Entire Company, If It Is