In Deciding Whether to Drop Its Electronics Product Line, a Company's

question 115

Multiple Choice

In deciding whether to drop its electronics product line, a company's manager should consider all of the following EXCEPT:

• A)how dropping the electronics product line would affect sales of its other products, like CDs.
• B)the revenues it would lose from dropping the product line.
• C)the amount of unavoidable fixed costs.
• D)the variable and fixed costs it could save by dropping the product line.

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Definitions:

Value-Creating Opportunities

Situations or actions that enhance the worth of goods, services, or a business, often through innovation or by meeting emerging customer needs.

Chief Executive Officer

The highest-ranking executive in a company, responsible for making major corporate decisions and managing overall operations.

Strategy Planning

The process of defining an organization's direction and making decisions on allocating its resources to pursue this strategy, including setting goals and determining actions.

Organization

An entity comprising multiple people, such as an institution or an association, that has a collective goal and is linked to an external environment.