If a Segment of a Business Is Expected to Produce

question 116

True/False

If a segment of a business is expected to produce an annual contribution margin of $30,000 but is also expected to incur controllable fixed costs of about $40,000 annually, that segment should probably be discontinued.

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Definitions:

Behavioral Change

A modification in an individual's actions or reactions as a result of experiences, learning, or external influences.

Elation

A state of elevated happiness, joy, or euphoria, often characterized by high energy and enthusiasm.

Detachment

The emotional state in which an individual maintains a boundary from a specific situation or emotional involvement.

Protest

A public demonstration of objection, disapproval, or dissent towards an idea or action, typically involving gatherings, marching, or signage.