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In deciding whether to drop its electronics product line, a company's manager should ignore ________. Group of answer choices the amount of unavoidable fixed costs the variable and fixed costs it could save by dropping the product line the effect of dropping the electronics product line on the sales of its other products the revenues it would lose from dropping the product line

Respuesta :

Answer:

The correct answer is letter "A": the amount of unavoidable fixed costs

Explanation:

Deciding what product to invest in or drop production relies on the costs implied in manufacturing those goods or services. As variables costs fluctuate and are relatively unpredictable, the costs measured to determine the sustainability of a product are fixed costs.

In the event fixed costs are too high to continue keeping them into account, it is a signal that good should be discontinued. On the other hand, if the fixed costs are lower each time, the product should keep manufacturing it.

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