A Particular Product Line Should Not Be Dropped If

question 65

Multiple Choice

A particular product line should not be dropped if:

• A) its total fixed costs are more than its contribution margin.
• B) its avoidable fixed costs are less than its contribution margin.
• C) its unavoidable fixed costs are more than its contribution margin.
• D) its variable costs are more than its fixed costs.

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Definitions:

Time

The indefinite continued progress of existence and events in the past, present, and future regarded as a whole.

Height

The measurement of someone or something from base to top or (in more abstract senses) any measure of vertical distance, often used in geometry and physics.

Completing the Square

A mathematical technique used to convert a quadratic equation into a perfect square trinomial, thereby simplifying the procedure of finding the equation's roots.

Round

Rounding is the process of adjusting a number to a nearby value that is shorter, simpler, or more explicit, often to a specified number of decimal places or significant digits.