If a Segment of a Business Is Expected to Produce

question 116

True/False

If a segment of a business is expected to produce an annual contribution margin of $30,000 but is also expected to incur controllable fixed costs of about $40,000 annually, that segment should probably be discontinued.

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Definitions:

Behaviourist

A psychologist or scientist who studies and interprets human and animal behavior in terms of observable actions and reactions.

Environmental Factors

External elements including climate, geography, pollution, and sociocultural aspects that can influence an organism's growth, development, and existence.

Human Behaviour

The range of actions and mannerisms exhibited by humans in conjunction with their environment, social values, and culture.

Theoretical Orientation

A foundational perspective or framework that guides a psychologist's approach to understanding and treating clients.