Even Though a Sales Volume Analysis Has Indicated That Maypo

Multiple Choice

Even though a sales volume analysis has indicated that Maypo oatmeal, Farina, Wheatena, and Maltex are low sales volume items for American Home Food Products, it could be inappropriate for the food producer to stop carrying these items because:

A) small orders do not affect fixed costs.
B) the primary demand for all cereals is declining.
C) the hot cereals are needed to round out its cereal product line.
D) their economic order quantity is low.
E) any product with low sales volume has a low gross margin and cannot adversely affect sales figures.