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Jones Company Sells Two Products, Gumbo and Jumbo

Question 73

Multiple Choice

Jones Company sells two products, Gumbo and Jumbo. Gumbo has a 45% contribution margin and Jumbo has a 55% contribution margin. Given these contribution margin percentages and assuming that other factors are equal, what should Jones Company do?


A) It should emphasize Gumbo
B) It should emphasize Jumbo
C) It should emphasize both products, since they are equally profitable
D) No recommendation can be made from the data given

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