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A business unit is a low-share participant in a structurally unattractive market, but managers argue it covers fixed overhead. What should the portfolio review test?
Whether exit, sale, or harvest would release resources for better strategic uses after considering avoidable costs.
Whether the unit can be labelled a cash cow because it produces any contribution.
Whether the unit should receive more investment to improve morale.
Whether all overhead should be allocated away so the unit appears profitable.
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