A Product Line Should Be Discontinued If the Contribution Margin

question 213

Multiple Choice

A product line should be discontinued if the contribution margin lost is

• A)more than the fixed costs saved.
• B)less than the fixed costs saved.
• C)more than the variable costs saved.
• D)less than the variable costs saved.

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Definitions:

Strategic Alliance

A formal agreement between two or more parties to pursue a set of agreed-upon objectives while remaining independent organizations.

Marketplace Needs

The demands and requirements of consumers in a particular market, which businesses aim to meet through the development and sale of products and services.

Critical Thinking

Ability to analyze and assess information to pinpoint problems or opportunities.

Competitive Differentiation

The unique value a company offers in its products or services compared to its competitors, making it stand out in the market.