Croc Catchers Calculates Its Contribution Margin to Be Less Than

question 75

Multiple Choice

Croc Catchers calculates its contribution margin to be less than zero.Which statement is true?

• A)Its fixed costs are less than the variable cost per unit.
• B)Its profits are greater than its total costs.
• C)The company should sell more units.
• D)Its selling price is less than its variable costs.

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Definitions:

Investment Account

An account held at a financial institution that is used to hold securities, cash, and other investments in the financial markets.

Significant Influence

The capacity of an investor to affect the financial or operating policies of an investee, typically through ownership of a significant but not majority share.

Retained Earnings

The portion of a company's profit that is held or retained and not paid out as dividends to shareholders.