Ask Question
BusinessBusiness
11 October, 20:26

If, by dropping a product line, a company cannot avoid as much in fixed costs as it loses in contribution margin, the company should:

a. keep the product line

b. drop the product line

c. increase fixed costs

d. none of the above

+4
Answers (1)
  1. 11 October, 23:36
    0
    a. keep the product line

    Explanation:

    The product line is a segment of related products which the company makes under a single brand and this product is similar and focus on the same market factor. Have similar attributes pricing and the quality. The process that the traders adopt to separate products in the same category is through the quality and price levels. The techniques of the price lining and bundle pricing, bait pricing, and leader pricing. If the company cannot avoid the direct and the common fixed costs of the product that are allocated to segments shows a loss in the contribution margins the company can keep the product line.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “If, by dropping a product line, a company cannot avoid as much in fixed costs as it loses in contribution margin, the company should: a. ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
This is a graph of the business cycle. Time is measured along the x-axis. What is measured along the y-axis? employment levels prices economic output demand
Answers (2)
The following data is available for Pina Colada Corp. at December 31, 2017: Common stock, par $10 (authorized 28000 shares) $196000 Treasury stock (at cost $15 per share) $900 Based on the data, how many shares of common stock are outstanding?
Answers (1)
The adjusted account balance of Spooky Town Internal Service Fund on June 30, 2016, was as follows: Cash $4,000 Receivable from Enterprise Fund $3,000 Building $313,000 - Inventory of supplies $32,150 Vouchers payable $7,150 Transfer in from General
Answers (1)
Dr. Beswick was writing questions for a test, but found herself listening to reggae music coming from an adjoining office, and thinking about her upcoming trip to the Caribbean. She is experiencing attentional deficit
Answers (1)
Joe Hall owns a limousine for use in his personal service business of transporting passengers to airports. The limousine's adjusted basis is $40,000. In addition, Hall owns his personal residence and furnishings, that together cost him $280,000.
Answers (1)
New Questions in Business
A firm produces 10 calculators that they sell for $15 each. The average variable cost for the production of 10 calculators is $13/unit. The fixed costs for this firm equal $20. What is the value of this firm's profits
Answers (1)
g The multiplier effect states that there are additional shifts in aggregate demand from fiscal policy, because it a. decreases income and thereby increases consumer spending. b. reduces investment and thereby increases consumer spending. c.
Answers (1)
Ryobi Limited sold a set of saws to Ace Hardware. The list price was $3,800. Ryobi offered a chain discount of 8/3/1. What's the net price of the saws
Answers (1)
Marcus is asked by higher management to create a document that provides a high level description of a project that has not yet been approved.
Answers (1)
Which of the following is NOT a standard component of a mail merge? a. a main document b. merged documents c. hyperlinks d. a data source
Answers (1)
Home » Business » If, by dropping a product line, a company cannot avoid as much in fixed costs as it loses in contribution margin, the company should: a. keep the product line b. drop the product line c. increase fixed costs d. none of the above
Sign Up Forgot Password?