A segment should probably be dropped when the segment has important side effects on other segments cannot cover its own costs. The correct option is B.
<h3>What is a segment margin?</h3>
The profit or loss generated by one component of a business is referred to as segment margin.
Segment margin only considers the segment's revenue and expenses.
By analyzing a company's strengths and weaknesses, segment margin can provide an accurate picture of where it is performing well and where it is not.
If a segment cannot cover its own costs, it should be dropped unless it has significant side effects on other segments.
Thus, the correct option is B.
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