All other things being equal, a company that sells multiple products should attempt to structure its sales mix so the greatest portion of the mix is composed of those products with the highest:
A) selling price.
B) variable cost.
C) contribution margin.
D) fixed cost.
E) gross margin.

Question

Quizplus · Accepted Answer

The contribution margin, which is sales revenue minus variable costs, directly impacts a company's profitability. Products with higher contribution margins provide more profit per unit sold, making them more desirable in the sales mix.

All Other Things Being Equal, a Company That Sells Multiple