Arturo Company sells two generators-Model A and Model B-for $456 and $390,respectively.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 the highest contribution margin,the sales force will be motivated to push sales of Model A more aggressively than Model B.

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11ea84d1_1170_d5aa_83dc_35776e719ed3_TB3006_00 The contribution margin of Model B ($70)is more than that of Model A ($52).The sales team will be motivated to push sales of Model B more aggressively than Model A.

Arturo Company Sells Two Generators-Model a and Model B-For $456