List three questions managers should consider when deciding whether to drop a product or a business segment
What will be an ideal response
1. Does the product or segment provide a positive contribution margin?
2. Will fixed costs continue to exist even if the company drops the product or segment?
3. Are there any direct fixed costs that can be avoided if the company drops the product or segment?
4. Will dropping the product or segment affect sales of the company's other products?
5. What would the company do with the fixed manufacturing capacity or store space?
You might also like to view...
Chad finds that he meets the eligibility requirements for Social Security. He elects to receive retirement benefits at 62. Which statement is true?
A. He will receive retirement benefits only according to his earnings history. B. He will receive benefits at a permanently reduced level. C. He will receive full retirement benefits. D. He will not be eligible for worker's compensation. E. His exempt amount limits will be lifted.
What is a tracking Gantt chart and what are the benefits and drawbacks of its use?
What will be an ideal response?
Paramount Carpets is considering purchasing new equipment costing $730,000
The company's management has estimated that the equipment will generate cash flows as follows: Year 1 $204,000 2 204,000 3 266,000 4 266,000 5 150,000 Considering the residual value is zero, calculate the payback period. (Round your answer to two decimal places.) A) 4.61 years B) 3.21 years C) 3.42 years D) 3.70 years
Business ethics is not more complicated than personal ethics
a. True b. False Indicate whether the statement is true or false