Question: Marsellus Electronics manufactures two tablet devices, the Cub, and the Eagle. Cub Variable cost per unit $150 Selling price $175 Eagle Variable cost per unit

 Marsellus Electronics manufactures two tablet devices, the Cub, and the Eagle.

Marsellus Electronics manufactures two tablet devices, the Cub, and the Eagle. Cub Variable cost per unit $150 Selling price $175 Eagle Variable cost per unit $450 Selling price $575 Currently Marsellus sells 1,000 Cub and 400 Eagle tablets. Given this information which of the following is an INCORRECT recommendation? c) While the Cub has a lower contribution margin it still covers direct costs d) While the Cub has a lower contribution margin it has a much higher volume of sales b) While the Cub has a lower contribution margin there are qualitative factors to take into account a) The Cub should be dropped due to the substantially lower contribution margin

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