Managers should discontinue a business if which of the following is less than the sum of relevant fixed costs and opportunity costs?
A) Profit
B) Contribution margin
C) Total cost
D) Variable cost

Question

Quizplus · Accepted Answer

The contribution margin should cover both the relevant fixed costs and the opportunity costs to justify continuing the business. If it's less, discontinuing may be considered.

Managers Should Discontinue a Business If Which of the Following