Management should focus on per unit costs when deciding whether to discontinue a product or not.

Question

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Management should not only focus on per unit costs but also consider other factors such as contribution margin, market demand, competition, and strategic importance while deciding whether to discontinue a product or not. Simply focusing on per unit costs may lead to wrong decisions as it does not give a complete picture of the product's profitability or market demand.

Management Should Focus on Per Unit Costs When Deciding Whether