Bates Company plans to add a new item to its line of consumer product offerings. Two possible products are under consideration. Each unit of Product A costs $6 to produce and has a contribution margin of $3, while each unit of Product B costs $12 and has a contribution margin of $4. What is the differential revenue for this decision?

a. $7

b. $1

c. $6

d. $9

Answer rating: 100% (QA)

Solution Answer 7 Contribution is the amount contributed from the sale of ... View the full answer