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10. A company sells two products J and K. Product J has a contribution margin ratio of 40% whereas Product K has a contribution margin

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10. A company sells two products J and K. Product J has a contribution margin ratio of 40% whereas Product K has a contribution margin ratio of 50%. Annual fixed expenses are expected to be $120,000, of which $80,000 belong to product J and the rest product K. Product J will generate $2 million in sales. Product K will generate $1.8 million in sales. Which product line is the most efficient to sell? a) J b) K

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