41.2k views
3 votes
The elimination of an unprofitable product line may adversely affect the remaining product lines. True or False

2 Answers

4 votes

Yes it is true that the elimination of an unprofitable product line may adversely affect the remaining product lines

Step-by-step explanation:

The elimination of the product which are not profitable may negatively cause the sale or demand of the other products which are in the line of sale.

The seller or producer may affect with the diminishing rate of profit and this may hamper the sale of other products which can be sold or for which the consumers can demand.

Thus it is true in this regard.

User Pronoob
by
5.2k points
2 votes

The statement is true.

Step-by-step explanation:

A product line is a gathering of related items all showcased under a solitary brand name that is sold by a similar organization. Organizations sell different product offerings under their different image names, looking to separate them from one another for better ease of use for purchasers.

If an unprofitable product is eliminated from the product line, it will effect the rest of the products in the line and will increase the earning of the other products in the line.

User Paul Clapham
by
5.0k points