Company XYZ produces and sells two types of calculators: Basic and Scientific. The Basic has a lower selling price per unit compared to the Scientific. However, the Basic has a higher contribution margin compared to the Scientific. Due to fixed production capacity, the company has a cap on total production ability. If the company's CEO has decided to shift the sales mix towards producing more Scientific calculators.

What would be the effect on total profits?

Answer rating: 100% (QA)

Shifting the sales mix towards producing more Scientific calculators would likely increase the compa... View the full answer