In Deciding Whether to Drop Its Electronics Product Line, a Company's

question 159

Multiple Choice

In deciding whether to drop its electronics product line, a company's manager should ignore:

• A)the variable and fixed costs it could save by dropping the product line.
• B)the revenues it would lose from dropping the product line.
• C)how dropping the electronics product line would affect sales of its other products, like CDs.
• D)the amount of unavoidable fixed costs.

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Definitions:

Laocoön

This term refers to a Trojan priest of Poseidon in Greek mythology, who warned against accepting the Greek wooden horse, and to the famous ancient sculpture depicting Laocoön and his sons being attacked by sea serpents.

Aeneid

The "Aeneid" is an epic poem written by the Roman poet Virgil, telling the legendary story of Aeneas, a Trojan who traveled to Italy and became the ancestor of the Romans.

Iliad

An ancient Greek epic poem attributed to Homer, chronicling the siege of Troy and highlighting themes of heroism, wrath, and the follies of gods and men.

Repoussé

Repoussé is a metalworking technique in which a malleable metal (such as gold, silver, copper) is ornamented or shaped by hammering from the reverse side to create a design in low relief.