Ex: The CEO of the widget-makin company decides that the firm's goal for the next month will be to maximize revenue from wi get sales as part of the long-term strategy to increase market share. The resulting revenuemaximizing price is equal to $6.25, with corresponding sales of 5,000 units. The corres onding per unit margin is $1.25, and the total contribution margin is 5,000*Sl. 5:56,250. We can compare this to the maximum mar in contribution of $11 250 and conclude that to maximize total revenue, the company nee s to give up 511,250 - 6,250=$5,000 of contribution margin. The decision that management needs to make in this exam leis whether or not it is worth giving u a total contribution of $5,000 per month to \"buy' an additional 2,000 units of eman . Since the revenue-maximizing price is lower than the contribution-maximizing price, there is no guarantee that the revenue-maximizing price will provide a reasonable ma rginor even a positive marginif incremental cost is greater than zero. For this reason, it is dangerous to maximize total revenue without including a constraint that ensures that the resulting price is greater than incremental cost