When Will the Elimination of a Product Line Have No

question 87

Multiple Choice

When will the elimination of a product line have no effect on the company's overall profit?

• A) When the avoidable fixed costs equal the product line's contribution margin
• B) When the unavoidable fixed costs equal the product line's contribution margin
• C) When there are no fixed costs incurred by the product line
• D) When the product line contribution margin is negative

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Definitions:

Extraneous Variable

Any variable that is not intentionally studied within an experiment that can affect the outcome of the research if not controlled.

Dependent Variable

The variable in an experiment that is observed and measured to see how it is affected by the independent variable.

Operational Definition

A clear, detailed description of how a research variable is measured or manipulated in a specific study, allowing others to understand or replicate the methodology.

Puzzles

Problems or enigmas designed to test ingenuity, knowledge, or problem-solving ability, often used as a form of entertainment or mental exercise.