Emara Company sells two generators—Model A and Model B—for $456 and $394, respectively
The variable cost of Model A is $406 and of Model B is $304. The company will generate lower revenues but a higher net income if it sells more of Model B than Model A.
Indicate whether the statement is true or false
TRUE .Model A Model B
Sales price $456 $394
Less: variable cost (406 ) (304 )
Contribution margin $50 $90
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