If the lost revenues from dropping a product exceed the cost savings from dropping the product, it should be retained.

Question

Quizplus · Accepted Answer

This statement is generally true. If a product is generating significant revenue, it may not be economically beneficial to discontinue it, even if there are cost savings associated with doing so. It ultimately depends on the specifics of each situation, but in general, retaining a product that generates more revenue than its costs is a sound business decision.

If the Lost Revenues from Dropping a Product Exceed the Cost