Steadigen Company Sells Two Generators-Model a and Model B-For $454

question 117

True/False

Steadigen Company sells two generators-Model A and Model B-for $454 per unit and $396 per unit,respectively.The variable cost of Model A is $408 per unit and of Model B is $314 per unit.If Steadigen Company's sales incentives reward sales of the goods with the highest contribution margin per unit,the sales force will be motivated to push sales of Model A more aggressively than Model B.

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