Company X is in the process of deciding whether to maintain or discontinue brand A. The following information refers to Brand A: Contribution margin = $61276
Avoidable fixed costs = $55148,4
Non-avoidable fixed costs = $49020,8
Company X should ___________

Question

Company X is in the process of deciding whether to maintain or discontinue brand A. The following information refers to Brand A:  Contribution margin = $61276 
 Avoidable fixed costs = $55148,4 
 Non-avoidable fixed costs = $49020,8 
  Company X should ___________

Answer

Keep brand A because the $61276 contribution margin is larger than avoidable costs

Answer

Keep brand A because the $61276 contribution margin is larger than non-avoidable costs.

Answer

Discontinue brand A because avoidable costs are larger than non-avoidable costs

Answer

None of the others

Answer

Keep brand A because the $61276 contribution margin is smaller than total costs.

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Company X is in the process of deciding whether to maintain or discontinue bran...

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