If a Product Has a Negative Contribution Margin, It Should

question 246

True/False

If a product has a negative contribution margin, it should not be dropped.

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Definitions:

Adaptation Strategies

Involves adjusting business strategies or products to accommodate changes in the market, environment, or consumer behavior.

Economic Environment

The economic factors that impact the operation and performance of businesses, including inflation, interest rates, economic growth, and unemployment rates.

Countercyclical Sales

Countercyclical sales refer to revenues generated from products or services whose demand increases during economic downturns, opposite to the general market trend.