A Company Has Two Different Products That Sell to Separate

question 70

True/False

A company has two different products that sell to separate markets. Financial data are as follows: Assume that fixed costs are all unavoidable and that dropping one product would not impact sales of the other. Because the contribution margin of Product B is negative, it should be dropped.

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Definitions:

Fads

Interests or practices followed enthusiastically for a relatively short period of time.

Fashion

The widespread custom or style of behavior and appearance at a particular time or in a particular place.

Free Rider

A term used in economics and political science to describe individuals who benefit from resources, goods, or services without paying for them or contributing to their provision.

Pledge Drives

Fundraising efforts, often conducted by public broadcasting stations, where viewers or listeners are encouraged to make donations to support the station.