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:

Unreliable Sales Forecasts

Projections of future sales that are uncertain or likely to be inaccurate due to various factors like market volatility or insufficient data.

Industry-Wide Trends

The prevailing movements or directions that affect an entire industry, encompassing changes in technology, consumer preferences, regulatory environment, and market dynamics.

Service Policies

Guidelines and regulations that govern the provision and quality of service offered by a business.

Customer Problems

Issues or complaints that consumers face while using a product or service, often addressed by businesses through customer service or product improvements.