Lesser Corporation has four products that use the same constrained resource. Dat

Question

Lesser Corporation has four products that use the same constrained resource. Data concerning those products appear below X100 X200 X300 Unit selling price Unit variable cost Unit contribution margin Amount of the constrained resource required Profitability index X400 $37.90 $24.70 $1750 $35.80 21.40 $22.70 $15.50 $14.20 $14.40 0.58 $51.59$41.89 $50.71 $24.83 15.20 9.20 3.30 0.44 0.37 0.28 The company does not have enough of the constrained resource to satisfy the demand for all four products If salespersons are paid commissions that are a set percentage of sales, which product would they prefer to sell? In other words, if it is a choice between selling one unit of one product and one unit of another, which product would they prefer to sell?

Explanation / Answer

if salespersons are paid commissions that are a set percentage of sales which product would they prefer to sale then they would prefer selling product with highest selling price. X100 is the correct choice

Related Questions

Navigate

• Browse (All)
• Browse L
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.