A Department Probably Would Be Considered for Elimination If It

question 110

Multiple Choice

A department probably would be considered for elimination if it had:

• A)a positive contribution margin and a net income from operations.
• B)a positive contribution margin and a net loss from operations.
• C)a negative contribution margin and a net loss from operations.
• D)a net loss, regardless of the contribution margin.

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Definitions:

Selling Price

The actual price at which a product or service is sold to the customer.

Quantity

The amount or number of a material or abstract thing not requiring a unit of measurement.

Long-Run Equilibrium

The condition in which all inputs and outputs in an economy or a market are fully adjusted and there are no external pressures for change.

Silk-Screened T-Shirts

T-shirts printed through a process in which ink is pressed through a screen, allowing for the creation of images and texts on fabric.