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:

Organizational Resources

Assets, capabilities, and inputs that an organization utilizes to operate and achieve its objectives, including human, financial, and physical resources.

Environmental Opportunities

Circumstances in the external environment that a business can exploit to its advantage.

Organizational Weaknesses

Aspects of an organization that reduce its ability to reach its goals, including deficiencies in resources, processes, or capabilities.

Mission Statement

A concise statement that defines the purpose and guiding principles of an organization, informing its goals and strategic direction.