Which of the following statements describes a scenario when management should consider dropping a business division?

Question

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If a division's avoidable fixed costs are greater than its contribution margin, it means that the division is not generating enough revenue to cover its direct expenses and variable costs. As a result, the division is making a negative contribution towards the fixed costs of the company as a whole. In such a scenario, management should consider dropping or restructuring the division to minimize losses and preserve the company's resources.

Which of the Following Statements Describes a Scenario When Management