Peak Company sells three different products that are similar, but are differentiated by various product features. Budgeted sales by product and in total for the coming year are shown below:
If customers are indifferent to which of the products to purchase from Peak Company, which product line should sales personnel recommend to customers that would most improve overall operating income?
A) Product line with the highest sales price
B) Product line with the lowest variable cost
C) Product line with the highest percentage of total budgeted sales
D) Product line with the highest contribution margin ratio
Correct Answer:
Verified
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