Final answer:
The most relevant decision for Dazzle, Inc. regarding the loss-making Series 9A is the keep-or-drop decision, which weighs the profitability of continuing or eliminating the product line.
Step-by-step explanation:
When a company produces a product that has been running at a loss, it has to make a tactical decision to improve its financial situation. With regard to Series 9A, Dazzle, Inc. has a few options to consider, and among them are the keep-or-drop and sell-or-process further decisions. However, based on the scenario where Series 9A has incurred losses for three years, the most relevant strategic option to consider is the keep-or-drop decision.
The keep-or-drop decision involves determining whether it's more beneficial for the company to continue with the product (keep) or eliminate the product line (drop). This decision takes into account the fixed and variable costs, the contribution margin, and the potential effects on other product lines and overall company strategy. For Dazzle, Inc., assessing the impact of Series 9A, whether its removal would lead to cost savings, and how it would alter the sales of Series 14 M, is critical.
On the other hand, a sell-or-process further decision is typically relevant when considering the profitability of selling a product at a certain point in production versus processing it further to add value. This is less relevant to Series 9A as the main issue is its continuing losses rather than a stage of production. Comparing this to choice D, accepting or rejecting a special order decision, is not as pertinent to the ongoing profitability of the Series 9A line. Therefore, the keep-or-drop decision would be the most advisable tactical decision for Dazzle, Inc. to deliberate.