Marcus Company gathered the following data about the three products that it produces: Which of the products should not be processed further?
A)Product A
B)Product B
C)Product C
D)Products A and C

Question

Marcus Company gathered the following data about the three products that it produces:  Which of the products should not be processed further?
A)Product A 
B)Product B 
C)Product C 
D)Products A and C

Quizplus · Accepted Answer

Product B has a negative contribution margin, meaning that it costs more to produce than it generates in revenue. Therefore, it should not be processed further to avoid incurring additional costs.

Marcus Company Gathered the Following Data About the Three Products