A Product Line Should Be Dropped When

question 74

Multiple Choice

A product line should be dropped when

• A)it has a positive contribution margin.
• B)it has unavoidable fixed costs.
• C)there will be a positive change in income if the product line is dropped.
• D)All of these answer choices are correct.

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Definitions:

Hippocampus

A region of the brain that is associated with memory formation, organization, and storage.

Cerebellum

A region of the brain that plays an important role in motor control, coordination, precision, and accurate timing.

Decay Theory

A theory suggesting that memory fades and disappears over time if it is not accessed and used.

Forgetting

The loss or decline of memory over time, which can occur for various reasons including decay, interference, and retrieval failure.