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A Segment Should Be Discontinued When the Segment

Sarah Jenkins • • 8 min read
A Segment Should Be Discontinued When the Segment
★ Key Takeaways

A Product Should Be Discontinued Only If the Contribution Margin That Will Be Lost as a Result of Dropping the Product Is Less Than the Fixed Costs That Would Be Avoided. Even in That Situation the Product May Be Retained If It Promotes the Sale of Other Products.

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Direct Answer • Key Takeaway

A Product Should Be Discontinued Only If the Contribution Margin That Will Be Lost as a Result of Dropping the Product Is Less Than the Fixed Costs That Would Be Avoided. Even in That Situation the Product May Be Retained If It Promotes the Sale of Other Products.

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Sarah Jenkins
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Sarah Jenkins

Sarah Jenkins is a veteran tech journalist with over 12 years of experience covering artificial intelligence, mobile innovations, and digital ethics. Her insights have appeared in leading technology publications worldwide.