A Company Has Two Different Products That Sell to Separate

question 12

True/False

A company has two different products that sell to separate markets.Financial data are as follows:

Assume that fixed costs are all unavoidable and that dropping one product would not impact sales of the other.Because the contribution margin of Product B is negative,it should be dropped.

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Definitions:

Concordance

In genetics, the occurrence of the same trait or medical condition in both members of a pair of twins or in multiple members of a family, indicating genetic influence.

Schizophrenia

A severe mental disorder characterized by disruptions in thought processes, perceptions, emotional responsiveness, and social interactions.

Biological differences

Variations among individuals in physical, genetic, and physiological characteristics due to their biology.

Social differences

The distinctions made between individuals or groups based on societal, economic, and cultural factors.