Answer
I disagree with the statement. While making and selling products with selling prices above variable costs can contribute to covering some costs and generating a contribution margin, it oversimplifies the decision-making process. Fixed costs are indeed relevant because they represent ongoing expenses that a company must cover to remain in operation. Therefore, a more comprehensive analysis that considers both variable and fixed costs, as well as the overall contribution to profitability, is necessary to make informed decisions about product offerings.
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