A product line should be discontinued if the contribution margin lost is
A)more than the fixed costs saved.
B)less than the fixed costs saved.
C)more than the variable costs saved.
D)less than the variable costs saved.

Question

Quizplus · Accepted Answer

A product line should be discontinued if the contribution margin lost is less than the fixed costs saved, as this would result in a net financial benefit to the company.

A Product Line Should Be Discontinued If the Contribution Margin