The elimination of an unprofitable product line will always increase the total profits of a company.

Question

Quizplus · Accepted Answer

Eliminating an unprofitable product line may reduce overhead costs, but it may also result in a decrease in revenue from that product line. Therefore, it may not always result in increased total profits for the company. The decision to eliminate a product line should be based on a thorough analysis of its impact on overall profitability.

The Elimination of an Unprofitable Product Line Will Always Increase