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:

Associated

Connected or linked with something else, typically indicating a relationship or affiliation between entities or concepts.

NLRB

The National Labor Relations Board, a US federal agency responsible for enforcing US labor law in relation to collective bargaining and unfair labor practices.

Bargaining Unit

A group of employees with a clear and identifiable community of interests who are represented by a single labor union in bargaining and legal matters.

Criteria

Standards or principles by which something is judged or decided.