Arturo Company's model A generator sells for $456 and model B sells for $390. The variable cost of model A is $404 and of model B is $320. If Arturo Company's sales incentives reward sales of the goods with highest contribution margin, the sales force will be motivated to push sales of model A more aggressively than model B.

Question

Quizplus · Accepted Answer

Calculations:
$456 - $404 = $52
$390 - $320 = $70

Arturo Company's Model a Generator Sells for $456 and Model