A(n)________ loses money when its sales do not cover variable costs.

Name: A(n)________ loses money when its sales do not cover variable costs.
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Question

Quizplus · Accepted Answer

Absolute product failure occurs when the sales of a product do not cover its variable costs, resulting in a loss for the company. This means that the company is not even able to cover the costs directly related to producing the product, let alone make a profit. The other options do not accurately describe this situation.

A(n)________ Loses Money When Its Sales Do Not Cover Variable