Answer:
The multiple choices are:
A. No recommendation can be made by the data
B. It should sell more crunchies
C. It should sell an equal number of each product
D. It should sell more munchies
Option D, it should sell more munchies , is correct
Explanation:
In order to cover generate more margin while the fixed cost remains the same, hence profitability is improved overall, the best course of action would be to sell more munchies with a higher contribution margin.
In essence, I am in strong support of the company, IM Enterprises , selling more of munchies, option D, as that would improve its bottom-line in terms of more profit generation.
Whatever contribution is made on additional sales,directly impacts net income since fixed cost has been covered ,hence a product with higher contribution would have impact on increased profit
