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Which order do select and why

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Question 1: You are evaluating orders from two new customers, but you will only be able to accept one of the orders without increasing your fixed costs. Management has directed you to choose the one that is most profitable for the company. Customer A is ordering 500 units and is willing to pay $200 per unit, and these units have a contribution margin of $60 per unit. Customer B is ordering 1,000 units and is willing to pay $140 per unit, and these units have a contribution margin ratio of 40%. Which order do you select and why?

Reference no: EM132648327

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