In determining whether to keep or drop a product line,product contribution is calculated as sales minus variable costs,minus avoidable fixed costs.

Name: In determining whether to keep or drop a product line,product contribution is calculated as sales minus variable costs,minus avoidable fixed costs.
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Quizplus · Accepted Answer

This statement is true. Product contribution is calculated as sales minus variable costs, minus avoidable fixed costs when making decisions about dropping or keeping a product line.

In Determining Whether to Keep or Drop a Product Line,product