If a company has a positive contribution margin, the maximum amount of loss that it can have is equal to its:

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The contribution margin is the difference between revenue and variable costs. This means that the contribution margin is used to cover the company's fixed costs, and once those are covered, any remaining contribution margin will be profit. Therefore, if a company has a positive contribution margin and it incurs losses, it means that its contribution margin is not enough to cover its fixed costs. So, the maximum amount of loss that the company can have is equal to its fixed costs.

If a Company Has a Positive Contribution Margin, the Maximum