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.

---

Definitions:

Proximity

The physical closeness or distance of objects, which influences how people perceive and group elements in their environment.

Parsing

The process of analyzing a string of symbols, either in natural language, computer languages, or data structures, conforming to the rules of a formal grammar.

Arbitrary

Based on random choice or personal whim, rather than any reason or system.

Stimulus

A signal or item in the environment that elicits a response from an organism.