Calculate contribution margin to be less than zero


Question:

Croc Catchers calculates its contribution margin to be less than zero. Which statement is true?

(a) Its fixed costs are less than the variable cost per unit.

(b) Its profits are greater than its total costs.

(c) The company should sell more units.

(d) Its selling price is less than its variable costs

Solution Preview :

Prepared by a verified Expert
Accounting Basics: Calculate contribution margin to be less than zero
Reference No:- TGS02037574

Now Priced at $10 (50% Discount)

Recommended (92%)

Rated (4.4/5)