Some Companies Use Contribution Margin Rather Than Sales Revenues as the Basis

question 8

True/False

Some companies use contribution margin rather than sales revenues as the basis of incentives for motivating sales persons because it will lead them to sell more of the higher margin goods.

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Definitions:

Industry Output

Industry Output is the total product or service produced within an industry, which is a key indicator of economic activity and health.

Government

The governing body of a nation, state, or community, charged with regulating and administering public policy and affairs.

Essential Resource

A necessary input or resource that is fundamental for the functioning and sustainability of an economy or ecosystem.

United States

A country located in North America, known for its large economy and diverse population, characterized by significant cultural and geographic variety.