All else being equal, a company earns more income by selling low-contribution margin products than by selling an equal number of high-contribution margin products.

Question

Quizplus · Accepted Answer

This statement is false. A company will earn more income by selling high-contribution margin products as they provide a higher profit margin per unit sold. Low-contribution margin products may require larger volumes of sales to generate the same level of profit.

All Else Being Equal, a Company Earns More Income by Selling