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Dropping a product line or business segment that is experiencing a loss will cause the...

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Accounting

Dropping a product line or business segment that is experiencing a loss will cause the overall profitabilityDropping a product line or a business segment that is experiencing a loss will cause the overall profitability of the company
to either increase or decrease depending on the fixed costs that can be avoided compared to the contribution margin lost.
to always decrease.
to either increase or decrease depending on the sales and variable costs that can be avoided compared to the contribution
margin of the remaining products/segments.
to always increase.
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