The General Rule Is to Discontinue a Product Line When

question 111

True/False

The general rule is to discontinue a product line when its total profit margin is greater than its avoidable fixed cost.

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Definitions:

Competitive Foothold

A strategic position obtained by a company in a market that gives it an advantage over its competitors.

Wholesalers

Entities that sell products in large quantities, typically to retailers or other intermediaries, rather than to the final consumer.

Distribution Channel

refers to the path or route through which goods and services travel from the producer to the final user or consumer.

Merchant Wholesalers

Businesses that buy goods in large quantities from manufacturers and resell them in smaller quantities to retailers.