In Deciding Whether to Drop Its Electronics Product Line,a Company's

question 112

Multiple Choice

In deciding whether to drop its electronics product line,a company's manager should consider all of the following EXCEPT:

• A) how dropping the electronics product line would affect sales of its other products, like CDs.
• B) the amount of unavoidable fixed costs.
• C) the variable and fixed costs it could save by dropping the product line.
• D) the revenues it would lose from dropping the product line.

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Definitions:

Price Changes

Variations in the cost of goods or services over time, influenced by factors such as supply and demand, inflation, and market competition.

Implied Contract

A contract formed in whole or in part from the conduct of the parties (as opposed to an express contract).

Enforce In Court

The act of seeking judicial action to ensure compliance or to execute a legal right, often involving litigation.

Fully Performed

Refers to a scenario where all terms and obligations of a contract have been met by all parties involved.