Arturo Company sells two generators-Model A and Model B-for $454 and $396,respectively.The variable cost of Model A is $408 and of Model B is $314.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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11ea86d6_82e5_c18c_92b6_817bfe3b8f4c_TB2804_00 The contribution margin of Model B ($82)is more than that of Model A ($46).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 $454