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You have the following data for product X : sales revenue $14,000, variable costs $20,000, allocated fixed costs $12,000. You cannot increase the price of
You have the following data for product X : sales revenue $14,000, variable costs $20,000, allocated fixed costs $12,000. You cannot increase the price of product X or improve the production process to increase profitability. What should you do about product X ? drop the product both in the short term and in the long term drop the product in the short term and keep it in the long term keep the product both in the short term and in the long term keep the product in the short term and drop it in the long term do nothing - unprofitable products are just one of the costs of doing business
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