Eliminating a Department That Has a Negative Contribution Margin Would

question 22

Short Answer

Eliminating a department that has a negative contribution margin would result in------------------ net income for the company than if the department were not eliminated.

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Definitions:

Physical Supply

The actual, tangible products and raw materials available in the market or held by a company.

Internal Balancing

A strategy where a state increases its own power in order to counter the power of potential adversaries.

Inventory Flexibility

The ability of a supply chain to quickly adjust its inventory levels in response to shifts in demand, product variety, and market dynamics.

Random Variation

The unpredictable fluctuations or differences that can occur within any process or set of data due to chance.