In relation to the critical resource factor, a company will maximize net income by selling products that:

Question

Quizplus · Accepted Answer

Selling products that contribute the most toward fixed costs will help maximize net income for a company with a critical resource factor. This is because fixed costs need to be covered regardless of the level of production or sales, so selling products that contribute more toward fixed costs will help ensure that the company meets its financial obligations. Choosing products with the lowest variable costs or highest selling price may not necessarily contribute significantly to fixed costs, while choosing products with the lowest differential costs may not ensure adequate coverage of fixed costs.

In Relation to the Critical Resource Factor, a Company Will