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:

Hypothalamus

A region of the brain that controls an immense number of bodily functions, including temperature regulation, thirst, hunger, sleep, mood, and the release of other hormones within the body.

Pituitary Gland

A small endocrine gland located at the base of the brain, responsible for releasing hormones that regulate various bodily functions.

Chemical Signals

Molecules released by cells that are used to communicate with other cells, often playing a role in the regulation of physiological processes.

Fear Center

A colloquial term often used to refer to the amygdala, a part of the brain involved in processing emotions, including fear.