In Deciding Whether to Drop or Keep a Product Line

question 54

Multiple Choice

In deciding whether to drop or keep a product line, all the following are relevant to the decision except:

• A) The level of unavoidable fixed costs.
• B) The segment margin generated by the product line.
• C) Demand interdependencies across product lines of the company.
• D) Effect of the decision on overall company morale.
• E) Whether dropping the product line today would eliminate future options for growth and expansion.

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Definitions:

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A formal communication informing someone of an action taken or to be taken, or a condition that affects legal rights or obligations.