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:

Declining Economy

A period marked by a decrease in economic activity, leading to lower GDP growth, employment, and spending.

Expectation Theory

Expectation Theory, often related to motivation, suggests that individuals are motivated to act in a certain way based on their expectations of the outcome.

Procrastinate

The act of delaying or postponing tasks or decisions, often unnecessarily.

Projection

The act of estimating or forecasting future outcomes based on current or past data.