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:

Aggression

Refers to behaviors or attitudes that are hostile, harmful, or confrontational, often resulting from frustration or provocation.

Innate Drives

Fundamental biological or psychological impulses inherent in all individuals from birth, driving behaviors such as hunger, thirst, or the need for social connection.

Genetically Transmitted

Characteristics or conditions that are passed from parents to offspring through genes.

Instincts

Innate, fixed patterns of behavior typically occurring in response to certain stimuli, common across a species and not requiring learned knowledge.