Managers Should Discontinue a Business If Its Contribution Margin Is

question 127

Multiple Choice

Managers should discontinue a business if its contribution margin is less than the sum of:

• A) Relevant fixed costs and opportunity costs
• B) Relevant fixed costs and sunk costs
• C) Relevant opportunity costs and sunk costs
• D) Relevant opportunity costs and profits

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Definitions:

Societal Expectations

The norms and standards that a society establishes as acceptable or normal behavior for its members.

Evolutionary Psychology

A field of psychology that examines behavioral processes in terms of their adaptive value for members of a species over the course of many generations.

Gender-Role Socialization

The process by which individuals learn the cultural norms and expectations associated with their designated gender through social interactions and media.

Observational Learning

Learning that occurs when an organism’s responding is influenced by the observation of others, who are called models.