A business segment should only be dropped if a company can save more in fixed costs than it loses in contribution margin. Thus option A is correct.
An economic activity that involves the exchange of goods and services with the help of buying and selling with the objective to gain some profit is called Business.
The cost of the organization which does not vary with time is referred to as a fixed cost and helps to take decisions for the management.
The company segment will be dropped when saving is done in fixed cost rather than losing in contribution margin which reflects the amount of average revenue.
Therefore, option A fixed cost is appropriate.
Learn more about fixed costs, here:
https://brainly.com/question/17100497
#SPJ4
