Which is not a consideration for dropping a product or product line?
A) Whether the product has a positive or negative contribution margin
B) If dropping the product or product line will affect sales of remaining products
C) Not having the need for free capacity
D) Determining if direct fixed costs could be avoided if the product or product line is dropped
Correct Answer:
Verified
Q130: Use the information below to answer the
Q131: Common fixed costs that are allocated between
Q132: Use the information below to answer the
Q133: If a product line is being evaluated
Q134: Use the information below to answer the
Q136: Use the information below to answer the
Q137: Use the information below to answer the
Q138: Fixed costs that continue to exist even
Q139: Use the information below to answer the
Q140: When deciding whether to drop a product,
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