A Company Has Two Different Products That Sell to Separate

question 33

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.

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Definitions:

Strategy Implementation

The execution of plans and strategies to achieve goals and objectives, typically involving the use of resources and coordinating efforts among team members.

Strategic Planning

The process of defining a business's strategy or direction and making decisions on allocating its resources to pursue this strategy.

Long-Range Planning

The process of setting goals and determining strategies for achieving those goals over a long-term period.

Core Competencies

The unique strengths or strategic advantages of an organization, stemming from the combination of its resources and capabilities, that differentiate it from competitors.