A Company Has Two Different Products That Sell to Separate

question 123

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:

Follow-Up Letter

A correspondence sent to inquire or remind about a matter previously addressed, ensuring continuity in communication.

Legal Claim

A formal assertion of a right against a party that may result in legal action.

Factual Evidence

Information and material that is presented in court to support the truth or falsehood of a claim, consisting of tangible items and eyewitness testimony.

Legal Work

Encompasses tasks and services performed by qualified legal professionals, including research, advice, and representation in legal matters.