Multiple Choice
Which of the following is the best reason for continuing to carry a product when a sales-volume analysis indicates it is a low-volume item?
A) The primary demand for the product is declining.
B) The product accounts for 5 percent of the total sales;however,its profit contribution is negative.
C) The item is needed to round out the company's product line.
D) The product's gross margin is correspondingly low.
E) None of these.
Correct Answer:
Verified
Correct Answer:
Verified
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