Question 14 2 points The decision to drop a product line sho

Question 14 (2 points) The decision to drop a product line should be based on The fact that the product line shows a net loss over several periods The ability of the firm to eliminate some fixed costs as a result of dropping the product. Whether the variable costs that can be avoided by dropping the product line are less than the contribution margin that will be lost. Whether the fixed costs that can be avoided by dropping the product line are greater than the contribution margin lost. Save

Solution

The decision to drop a product line should be based on :

So answer is d) Whether the Fixed costs that can be avoided by dropping the product line, are greater than the contribution margin lost