If a product line has a positive contribution margin,the product line should be dropped.

Name: If a product line has a positive contribution margin,the product line should be dropped.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A positive contribution margin means that the product is generating enough revenue to cover its variable costs and contribute towards covering fixed costs and generating profit. Therefore, dropping a product line with a positive contribution margin would actually result in a loss of revenue and profits for the company.

If a Product Line Has a Positive Contribution Margin,the Product