Which of the Following Statements Describes a Scenario When Management

question 59

Multiple Choice

Which of the following statements describes a scenario when management should consider dropping a business division?

• A)The division has been reporting an operating loss consistently.
• B)The division's avoidable fixed costs are less than its contribution margin.
• C)The division's avoidable fixed costs are greater than its contribution margin.
• D)The division's unavoidable fixed costs are greater than its operating loss.

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