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48 Bonita Inc. sells two versions of its product, standard and deluxe. The standard model has a 15.0 percent profit margin and the deluxe model
48
Bonita Inc. sells two versions of its product, standard and deluxe. The standard model has a 15.0 percent profit margin and the deluxe model has a 16.7 percent profit margin. The standard model has a 30.1 percent contribution margin and the deluxe has a 22.6 percent contribution margin. If other factors are equal, which product should Bonita emphasize to its customers?
| The standard model. |
| The deluxe model. |
| Selling either results in the same additional income for the company. |
| Not enough information is given. |
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