Which of the Following Are Valid Reasons for Eliminating a Product

question 46

Multiple Choice

Which of the following are valid reasons for eliminating a product line?
I.The product line's contribution margin is negative.
II.The product line's traceable fixed costs plus its allocated common corporate costs are less than its contribution margin.

• A)Only I
• B)Only II
• C)Both I and II
• D)Neither I nor II

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Definitions:

Sleeping Clusters

Groups of animals that gather and sleep together for mutual benefits such as warmth, protection from predators, or social bonding.

Selfish Herd Hypothesis

A theory suggesting that individuals in a group move towards the center to reduce their predation risk, acting out of self-interest.

Sleeping Clusters

Groups formed by individuals of certain species during rest periods for protection or thermoregulation.

Assassin Bug

A member of the Reduviidae family of insects known for their predatory behavior, using a long rostrum to inject lethal saliva into their prey.