When a Segment of a Business Consistently Shows Net Losses

question 94

Multiple Choice

When a segment of a business consistently shows net losses, it should:

• A) Definitely be dropped
• B) Be dropped only if its contribution to overall company profits is negative
• C) Be dropped only if contribution margin exceeds fixed costs
• D) Never be dropped

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Definitions:

Percentage Return

A metric calculating the percentage change in value of an investment over a specified time period.

House Calls

Visits made by medical professionals to the residences of patients to provide healthcare services.

Histograms

Graphical representations of the distribution of data, in which the frequency of data points in defined intervals is shown.

Histogram

A graphical representation of the distribution of numerical data, often used to visualize the frequency of data points in consecutive intervals.