Company X is in the process of deciding whether to maintain or discontinue brand A. The following information refers to Brand A: Contribution margin = $69949
Avoidable fixed costs = $62954,1
Non-avoidable fixed costs = $55959,2
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 = $69949 
 Avoidable fixed costs = $62954,1 
 Non-avoidable fixed costs = $55959,2 
  Company X should ___________

Accepted Answer

keep brand A because the $69949 contribution margin is larger than avoidable costs.

Answer

keep brand A because the $69949 contribution margin is smaller than avoidable costs.

Answer

None of the others

Answer

keep brand A because the $69949 contribution margin is larger than non-avoidable costs.

Answer

discontinue brand A because avoidable costs are larger than non-avoidable costs.

Crowdly

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

Want instant access to all verified answers on moodle.lisboa.ucp.pt?