Which Is NOT a Consideration for Dropping a Product or Product

question 81

Multiple Choice

Which is NOT a consideration for dropping a product or product line?

• A)Whether the product has a positive or negative contribution margin
• B)If dropping the product or product line will affect sales of remaining products
• C)Not having any free capacity
• D)Determining if direct fixed costs could be avoided if the product or product line is dropped

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Definitions:

Labor

The physical and mental effort used in the production of goods and services.

Positive Supply

A market condition where suppliers are willing to offer goods or services at a particular price level.

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity demanded by consumers at those prices.

Plaster

A mixture of lime, sand, water, and sometimes other materials, applied to walls and ceilings to create a smooth or decorative surface.