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:

Question

Quizplus · Accepted Answer

The contribution margin is the amount of money left over from sales revenue after accounting for variable costs. Products with a higher contribution margin will generate more profit for the company. Therefore, a company should attempt to structure its sales mix so that the greatest portion of the mix is composed of those products with the highest contribution margin.

All Other Things Being Equal, a Company That Sells Multiple