Which of the following statements describes a scenario when management should consider dropping a business division?
A) The division has been consistently reporting an operating loss.
B) The division's avoidable fixed costs are less than its contribution margin.
C) The division's avoidable fixed costs are greater than its contribution margin.
D) The division's unavoidable fixed costs are greater than its operating loss.
C
You might also like to view...
The total amount of patent cost amortized to date is usually
a. shown in a separate Accumulated Patent Amortization account which is shown contra to the Patents account. b. shown in the current income statement. c. reflected as credits in the Patents account. d. reflected as a contra property, plant and equipment item.
Which of the following would NOT be covered under Coverage B of the Homeowners forms?
a. A separate building on the insured premises used for business. b. A building connected to the main dwelling only by a fence. c. A private garage rented to a non-tenant. d. An in-ground swimming pool.