If the Contribution Margin Is Not Sufficient to Cover Fixed

question 235

Multiple Choice

If the contribution margin is not sufficient to cover fixed expenses:

• A) total profit equals total expenses.
• B) contribution margin is negative.
• C) a loss occurs.
• D) variable expenses equal contribution margin.

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Definitions:

Affective Component

The emotional or feeling segment of an attitude, which influences individuals' feelings or emotions about an object, person, or event.

Behavioral Component

Pertains to the aspects of psychology that involve observable human actions and responses in various situations.

Attitude Object

An entity such as a product, brand, or service that evokes a positive or negative response from consumers.

Affective Component

Part of an attitude that involves a person's feelings or emotions about an object, person, or event.