If a Product Line Has a Positive Contribution Margin, the Product

question 265

True/False

If a product line has a positive contribution margin, the product line should be dropped.

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Definitions:

Tax Revenue

The income gained by governments through taxation.

Income Taxes

Taxes levied by governments on individuals or entities' income, affecting the amount of money they retain from earnings.

Benefits Principle

A taxation theory that suggests individuals should pay taxes based on the benefits they receive from government services.

Benefits Principle

The principle suggesting that those who benefit from government services should pay in proportion to the amount they benefit.