Sales mix:
In situations when a company sells a mix of products, some are expected to be more cost-effective than the others. The management of the company is often wise to focus on sales efforts on those products that prove to be more profitable. When production facilities or other factors are restricted, any increase in the production and sale of one product generally needs reducing the production and sale of others.
In this case, the management is required to identify the most cost-effective combination or sales mix of products. For this purpose, the management should know the contribution margin of each product, any constraints on these facilities and its markets.
The most profitable sales mix for EM Company.

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Chapter 23 Solutions
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