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Product A's contribution margin ratio (60%) is greater than Product B's contribution margin ratio (40%). Product A's contribution margin ratio can be contributed to its
Product A's contribution margin ratio (60%) is greater than Product B's contribution margin ratio (40%). Product A's contribution margin ratio can be contributed to its lower promotion and sales commissions costs. Thus, management should consider a.reducing Product B's promotion and sales commissions costs. b.emphasizing Product A in its marketing plans. c.increasing the price of Product B. d.All of these choices are correct.
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