As long as the selling price is less than the variable cost per unit,some contribution will be made to cover fixed costs.

Name: As long as the selling price is less than the variable cost per unit,some contribution will be made to cover fixed costs.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

If the selling price is less than the variable cost per unit, each unit sold would actually result in a loss, not contributing to covering fixed costs.

As Long as the Selling Price Is Less Than the Variable