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Answer:
The correct answer is C. Loss occurs.
Explanation:
If the contribution margin is not sufficient to cover fixed expenses:
The contribution margin is calculated by deducting from sales the variable components. <u>Unless the selling price is lower than unitary variable costs, contribution margin will never be negative.</u>
When the contribution margin is lower than fixed costs, the company incurs on a loss.
Full question attached
Answer and Explanation:
Answer and explanation attached
Your correct answer is C.
Assets, liabilities, stockholders' equity
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