A quantitative rule of thumb for a keep-versus-drop decisions is that any fixed costs avoided by dropping a product line or closing a business segment should be larger than
A) the contribution margin given up.
B) the sales given up.
C) the variable costs given up.
D) the income given up.
Correct Answer:
Verified
Q31: Processes that a company must control in-house
Q32: Payroll processes which typically can be outsourced
Q33: Pergola Industries currently produces 1,000 units of
Q34: Tastykakes makes various cookies and cupcakes. The
Q35: In which category of management decisions would
Q37: Dropping a product line or a business
Q38: Yuwanga company has three business segments, two
Q39: Quentin Company is considering whether it should
Q40: Saturn Industries has three product lines. Management
Q41: In order to maximize income within a
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents