Question

Management should focus its sales and production efforts on the product or products that will provide

A. the highest sales revenue
B. the lowest direct labor hours
C. the lowest product costs
D. the maximum contribution margin

Answer 1

Step-by-step explanation:

Management should focus their efforts on products with the highest contribution margins. Contribution margin in the amount of profit brought in by each additional unit. Highest sales revenue doesn't guarantee profit, same with direct labor and lowest price.