In the Decision on Whether or Not to Drop an Unprofitable

question 26

Multiple Choice

In the decision on whether or not to drop an unprofitable product line, the product line will most likely be dropped if:

• A) all of the product line's fixed costs are unavoidable.
• B) the product line's total fixed costs are less than the contribution margin lost from dropping the product line.
• C) the contribution margin lost from dropping the product line is less than the fixed costs avoided from dropping the product line.
• D) the contribution margin lost from dropping the product line is more than the fixed costs avoided from dropping the product line.

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Definitions:

Oppressed Creature

An oppressed creature refers to an individual or group that experiences systematic injustices, limitations, and hardships imposed by dominant societal forces or governing bodies.

Opium

A narcotic drug extracted from the seed capsules of the poppy plant, used historically as a pain reliever and recreationally for its euphoric effects.

Profane

Elements of the everyday world that do not inspire or motivate.

Sacred

Describing something regarded with immense respect or worshipful veneration, often associated with religious or spiritual significance.