Does the contribution margin play any role in decision


Assignment Task: Please respond the below statement:

Statement 1:

Sub: Advanced Cost accounting - 175 words and reference

At first glance, the temptation is to say yes to the question. If you can sell a product at a positive contribution margin, why wouldn't you do it?

Statement 2:

Please respond the below statement:

Sub: Advanced Cost accounting - 175 words and reference

Question: Explain why we agree or disagree with the following statement, "Companies should always make and sell all products whose selling prices exceed variable costs."

Statement 3:

Sub: Advanced Cost accounting - 175 words and reference

Question:

Does the contribution margin play any role in these decisions? Why or why not? (Answer needs this question)

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Cost Accounting: Does the contribution margin play any role in decision
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