On Which of the Following Factors Should the Decision to Drop

question 138

Multiple Choice

On which of the following factors should the decision to drop a product line should be based?

• A)the fact that the product line shows a net loss over several periods.
• B)the ability of the firm to eliminate some fixed costs as a result of dropping the product.
• C)whether the fixed costs that can be avoided by dropping the product line are less than the contribution margin that will be lost.
• D)whether the fixed costs that can be avoided by dropping the product line are greater than the contribution margin lost.

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Definitions:

Research Scientists

Professionals who conduct investigations and experiments to acquire new knowledge, typically within a specific field of study, aiming to expand understanding and applications.

Short Tempered

A tendency to become angry quickly or easily.

Uncooperative

Displaying reluctance or refusal to work or act together with others in a cooperative or collaborative manner.

Agreeableness

A personality trait that reflects the extent to which a person is cooperative, polite, friendly, and flexible versus cold, contentious, and confrontational.