Jones company sells an average of 200 chairs per week, of which 30% are regular chairs and 70% are executive chairs. regular chairs sell for $100 each and incur variable costs of $62. executive chairs sell for $170 each and incur variable costs of $125. which type of chair should jones company promote to maximize profits?

Executive chair because it contributes the highest contribution margin.

45 vs 38

Explanation:

The benefits are maximum when the maximum difference between total income and total costs is reached.

200,00  

60,0030%  

140,0070%  

Regular ChairsExecutive chairs

Quatity       60,00140,00

Price Unit100         170

Cost Unit62         125

Revenue600023800

Cost372017500

       22806300

Max.Profit  38              45