If a Segment of a Business Is Expected to Produce

question 116

True/False

If a segment of a business is expected to produce an annual contribution margin of $30,000 but is also expected to incur controllable fixed costs of about $40,000 annually, that segment should probably be discontinued.

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Definitions:

Managed Efficiently

The state of being controlled or directed in a manner that maximizes productivity and minimizes waste or unnecessary effort.

Supplier Performance Index

A quantitative measure used to assess and compare the performance of suppliers, based on criteria such as quality, delivery, and responsiveness.

Supplier Activity Costs

Expenses associated with activities performed by suppliers, including procurement, delivery, and payment processing.

Customer Retention

A metric or strategy focused on keeping existing customers engaged and continuing to buy from a business over time.