A profitability analysis can be useful to managers because it can help them determine if:
A)salespeople have been selling product lines equally
B)salespeople have been doing enough input activities for all product lines
C)there are product lines that need to be marketed differently
D)there are product liens that sell better than others
E)there are product lines that are costing the company money to sell

Question

Quizplus · Accepted Answer

A profitability analysis can help managers identify the product lines that are costing the company money to sell. This information can help them make decisions about whether to discontinue certain products or adjust prices to improve profitability. The other options listed may also be important for managers to consider, but they are not the primary focus of a profitability analysis.

A Profitability Analysis Can Be Useful to Managers Because It