Management should focus its sales and production efforts on the product or products that will provide

A. the highest sales revenue

B. the lowest direct labor hours

C. the lowest product costs

D. the maximum contribution margin

Question

Business

Evelyn Graves

25 November, 08:51

Management should focus its sales and production efforts on the product or products that will provide

A. the highest sales revenue

B. the lowest direct labor hours

C. the lowest product costs

D. the maximum contribution margin

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Answers (1)

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Richards · Answer 1

Management should focus their efforts on products with the highest contribution margins. Contribution margin in the amount of profit brought in by each additional unit. Highest sales revenue doesn't guarantee profit, same with direct labor and lowest price.

Management should focus its sales and production efforts on the product or products that will provideA. the highest sales revenueB. the lowest direct labor hoursC. the lowest product costsD. the maximum contribution margin

Management should focus its sales and production efforts on the product or products that will provide

A. the highest sales revenue

B. the lowest direct labor hours

C. the lowest product costs

D. the maximum contribution margin