Which of the following is the best reason for continuing to carry a product when a sales volume analysis indicates it is a low-sales-volume item?
A) The product has high fixed costs but low variable costs.
B) The primary demand for the product is declining.
C) The item is needed to round out the company's product line.
D) The product's gross margin is correspondingly low.
E) The product accounts for at least 5 percent of the total sales even though it has a negative contribution margin.

Question

Quizplus · Accepted Answer

The item may be essential for offering a complete range of products to customers, ensuring they find everything they need within the company's product line, which can enhance customer satisfaction and loyalty.

Which of the Following Is the Best Reason for Continuing