If Sales Revenues Are Used in the Denominator in the Profitability

question 42

Multiple Choice

If sales revenues are used in the denominator in the profitability index for a product then:

• A)the company has no constraint.
• B)total sales should be the company's constraint.
• C)the selling price of the product in question is the company's constraint.
• D)selling effort should be the company's constraint.