Complete the exercise on Chapter 6?Exercise on Chapter 6

Complete the exercise on Chapter 6

Exercise on Chapter 6

6-8 “If a product is generating a loss, then it should be discontinued.” Do you agree? Explain using one example.

To some extent, the decision to terminate a loss-making product will rely on various factors like the need for market penetration and the creation for a loss lender. It is essential to assess the effects of the discontinuation on the company. For example, for a long time, inkjet printers have been sold at cost or a loss to attract buyers who have to purchase the manufacturer’s expensive ink cartridges, generating high profits.

Additionally, Revenues and expenditures associated with reaching that level of income should be carefully assessed before the decision is made to stop producing a product. The fixed expenses have no bearing on this form of decision-making. A company will still have to pay fixed costs even if it discontinues its loss-making product. The variable expenses, notably preventable and unavoidable expenditures, should be taken into account the most when doing so. 

Product discontinuation should only be done if the unavoidable costs outweigh the losses caused by the product. Alternatively, if the unavoidable costs are lower than the loss caused, the product should be discontinued…………

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more