In Which of the Following Cases Is a Customer Most

question 54

Multiple Choice

In which of the following cases is a customer most likely to be dropped?

• A)When the customer's variable costs are more than its total fixed costs.
• B)When the customer's avoidable fixed costs are more than its contribution margin.
• C)When the customer's total fixed costs are more than its contribution margin.
• D)When the customer's contribution margin is more than its avoidable fixed costs.
• E)None of the answer choices is correct.

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Definitions:

Social Network Analysis

A methodological approach in social science that studies social structures through the use of networks and graph theory.

Communication

The process of conveying information or expressing ideas and feelings through verbal, nonverbal, written, or visual means.

Motivation

The internal and external factors that stimulate people to take actions that lead to achieving a goal.

Reporting Relationships

The formal lines of authority and accountability within an organization, detailing who reports to whom.