Absolute profitability: The profitability that measures the impact of adding or leaving a particular business segment such a products, customers on the company’s overall profit earning capacity is known as absolute profitability. The meaning of absolute profitability.

Question

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Answer 1

Question

Chapter AB, Problem 1Q

To determine

Absolute profitability:

The profitability that measures the impact of adding or leaving a particular business segment such a products, customers on the company’s overall profit earning capacity is known as absolute profitability.

The meaning of absolute profitability.

Expert Solution & Answer

Answer to Problem 1Q

Absolute profitability is used to measure the profit earning capacity of the business segments.

Explanation of Solution

The information needed to measure the absolute profitability is as under:

The current profit earning capacity of the company.
The details of the customers and the products of the business segment to be added or dropped.
The pricing policy of the product.
The pricing policy of the competitor’s product.

The list is not exhaustive and may include other factors like geographical conditions, type of market, etc as it differs from business to business.

Conclusion

The meaning of absolute profitability is thus explained.

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Answer 2

Question

Chapter AB, Problem 1Q

To determine

Absolute profitability:

The profitability that measures the impact of adding or leaving a particular business segment such a products, customers on the company’s overall profit earning capacity is known as absolute profitability.

The meaning of absolute profitability.

Expert Solution & Answer

Answer to Problem 1Q

Absolute profitability is used to measure the profit earning capacity of the business segments.

Explanation of Solution

The information needed to measure the absolute profitability is as under:

The current profit earning capacity of the company.
The details of the customers and the products of the business segment to be added or dropped.
The pricing policy of the product.
The pricing policy of the competitor’s product.

The list is not exhaustive and may include other factors like geographical conditions, type of market, etc as it differs from business to business.

Conclusion

The meaning of absolute profitability is thus explained.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter AB, Problem 1Q

To determine

Absolute profitability:

The profitability that measures the impact of adding or leaving a particular business segment such a products, customers on the company’s overall profit earning capacity is known as absolute profitability.

The meaning of absolute profitability.

Expert Solution & Answer

Answer to Problem 1Q

Absolute profitability is used to measure the profit earning capacity of the business segments.

Explanation of Solution

The information needed to measure the absolute profitability is as under:

The current profit earning capacity of the company.
The details of the customers and the products of the business segment to be added or dropped.
The pricing policy of the product.
The pricing policy of the competitor’s product.

The list is not exhaustive and may include other factors like geographical conditions, type of market, etc as it differs from business to business.

Conclusion

The meaning of absolute profitability is thus explained.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter AB, Problem 1Q

To determine

Absolute profitability:

The profitability that measures the impact of adding or leaving a particular business segment such a products, customers on the company’s overall profit earning capacity is known as absolute profitability.

The meaning of absolute profitability.

Expert Solution & Answer

Answer to Problem 1Q

Absolute profitability is used to measure the profit earning capacity of the business segments.

Explanation of Solution

The information needed to measure the absolute profitability is as under:

The current profit earning capacity of the company.
The details of the customers and the products of the business segment to be added or dropped.
The pricing policy of the product.
The pricing policy of the competitor’s product.

The list is not exhaustive and may include other factors like geographical conditions, type of market, etc as it differs from business to business.

Conclusion

The meaning of absolute profitability is thus explained.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter AB, Problem 1Q

To determine

Absolute profitability:

The profitability that measures the impact of adding or leaving a particular business segment such a products, customers on the company’s overall profit earning capacity is known as absolute profitability.

The meaning of absolute profitability.

Expert Solution & Answer

Answer to Problem 1Q

Absolute profitability is used to measure the profit earning capacity of the business segments.

Explanation of Solution

The information needed to measure the absolute profitability is as under:

The current profit earning capacity of the company.
The details of the customers and the products of the business segment to be added or dropped.
The pricing policy of the product.
The pricing policy of the competitor’s product.

The list is not exhaustive and may include other factors like geographical conditions, type of market, etc as it differs from business to business.

Conclusion

The meaning of absolute profitability is thus explained.

Answer 6

Chapter AB, Problem 1Q

To determine

Absolute profitability:

The profitability that measures the impact of adding or leaving a particular business segment such a products, customers on the company’s overall profit earning capacity is known as absolute profitability.

The meaning of absolute profitability.

Expert Solution & Answer

Answer to Problem 1Q

Absolute profitability is used to measure the profit earning capacity of the business segments.

Explanation of Solution

The information needed to measure the absolute profitability is as under:

The current profit earning capacity of the company.
The details of the customers and the products of the business segment to be added or dropped.
The pricing policy of the product.
The pricing policy of the competitor’s product.

The list is not exhaustive and may include other factors like geographical conditions, type of market, etc as it differs from business to business.

Conclusion

The meaning of absolute profitability is thus explained.

Answer 7

Chapter AB, Problem 1Q

To determine

Absolute profitability:

The profitability that measures the impact of adding or leaving a particular business segment such a products, customers on the company’s overall profit earning capacity is known as absolute profitability.

The meaning of absolute profitability.

Answer 8

Expert Solution & Answer

Answer to Problem 1Q

Absolute profitability is used to measure the profit earning capacity of the business segments.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

The information needed to measure the absolute profitability is as under:

The current profit earning capacity of the company.
The details of the customers and the products of the business segment to be added or dropped.
The pricing policy of the product.
The pricing policy of the competitor’s product.

The list is not exhaustive and may include other factors like geographical conditions, type of market, etc as it differs from business to business.

Answer 12

Conclusion

The meaning of absolute profitability is thus explained.

Answer 13

Ch. AB - Prob. 1Q Ch. AB - Prob. 2Q Ch. AB - Prob. 3Q Ch. AB - Prob. 4Q Ch. AB - Prob. 5Q Ch. AB - Prob. 6Q Ch. AB - Prob. 7Q Ch. AB - Prob. 1E Ch. AB - Prob. 2E Ch. AB - Prob. 3E

Absolute profitability: The profitability that measures the impact of adding or leaving a particular business segment such a products, customers on the company’s overall profit earning capacity is known as absolute profitability. The meaning of absolute profitability.

Absolute profitability: The profitability that measures the impact of adding or leaving a particular business segment such a products, customers on the company’s overall profit earning capacity is known as absolute profitability. The meaning of absolute profitability.

Answer to Problem 1Q

Explanation of Solution

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Chapter AB Solutions

Absolute profitability:

The profitability that measures the impact of adding or leaving a particular business segment such a products, customers on the company’s overall profit earning capacity is known as absolute profitability.

The meaning of absolute profitability.