Managers maximize operating income:
A)to avoid optimal sales.
B)to determine product mix.
C)to disregard income supply and demand.
D)to avoid individual contribution margins.
E)to disregard data about which products to sell and in what quantity.

Question

Quizplus · Accepted Answer

Maximizing operating income involves determining the product mix in order to generate the highest profitability. This means taking into account data about which products to sell and in what quantity, as well as considering individual contribution margins. It is not about avoiding optimal sales or disregarding income supply and demand.

Managers Maximize Operating Income