A company should always promote the product:
A) With the highest per unit contribution margin
B) That results in the highest total contribution margin
C) With the lowest variable cost per unit
D) With the highest sales price

Question

Quizplus · Accepted Answer

Promoting the product that results in the highest total contribution margin is the most effective strategy for maximizing profits. This approach considers both the per unit contribution margin and the volume of sales, ensuring that the company focuses on the products that contribute the most to covering fixed costs and generating profit.

A Company Should Always Promote the Product