A Segment of a Business Shows a Contribution Margin of $30,000

question 65

True/False

A segment of a business shows a contribution margin of $30,000 but incurs controllable fixed costs of $26,000. Eliminating that segment will result in an increase in company-wide net income.

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Definitions:

Employment Flexibility

Refers to the adaptability of work arrangements, allowing for changes in working hours, locations, and duties to meet both employer and employee needs.

Functional Flexibility

The ability of an organization to adapt and manage workforce skills and roles to meet changing market conditions, often involving cross-training and job rotation.

Procedural Flexibility

The ability to adapt the processes and rules governing actions or decisions based on the circumstances, often to ensure fairness or efficiency.

Pay Flexibility

The ability of employers to adjust wages based on factors like performance, market conditions, or the company's financial status.