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:

Libido

A term used in psychoanalytic theory to denote the energy of the sexual drive as a component of the life instinct.

Infant

A very young child or baby, typically under the age of one year, at the earliest stages of development.

Sensations

The initial process of detecting and encoding environmental stimuli through the senses.

Personality

A unique set of emotional, thought, and behavioral patterns that define how a person reacts to situations and interacts with others.