Risk of loss is low if,when sales are low,contribution margin is less then fixed costs.

Name: Risk of loss is low if,when sales are low,contribution margin is less then fixed costs.
Brand: Quizplus
Rating: 4.8 (39 reviews)

Question

Quizplus · Accepted Answer

The statement is incorrect. The risk of loss is actually high if the contribution margin is less than fixed costs when sales are low. This means that the company is not generating enough revenue to cover its fixed expenses, which can lead to a loss if the situation persists.

Risk of Loss Is Low If,when Sales Are Low,contribution Margin