Question: Decision Rule: Eliminate Unprofitable Segment or Product 1.If Lost Contribution Margin > Avoidable fixed costs, (2) keep or drop? 2.If Lost Contribution Margin < Avoidable

Decision Rule: Eliminate Unprofitable Segment or Product

1.If Lost Contribution Margin > Avoidable fixed costs, (2) keep or drop?

2.If Lost Contribution Margin < Avoidable fixed costs, (3) keep or drop?

OR

3.If Lost Gross Margin > Avoidable operating costs, (4) keep or drop?

4.If Lost Gross Margin < Avoidable operating costs, (5) keep or drop?

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