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Which of the Following Entails Reducing the Business Portfolio by Eliminating

question 93

Multiple Choice

Which of the following entails reducing the business portfolio by eliminating the products or business units that are not profitable or that no longer fit in the company's overall strategy.


Definitions:

Sales Mix

Sales mix is the proportion of different products or services that a company sells, impacting its overall profitability and strategic market positioning.

Contribution Margin

The amount remaining from sales revenue after variable costs have been deducted, indicating the capacity to cover fixed costs and generate profit.

Fixed Costs

Costs that do not vary with the level of production or sales within a certain range, such as rent, salaries, and insurance.

Variable Cost

A cost that varies with the level of output or activity, such as materials and labor costs.

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