What Must Be True If the Contribution Margin Is Less

question 153

Multiple Choice

What must be true if the contribution margin is less than zero?

• A)The selling price per unit is less than the variable cost per unit
• B)Total fixed costs will be greater than total variable costs.
• C)Not enough units were sold.
• D)Fixed costs plus variable costs are less than total revenue.

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Definitions:

Mountain Biomes

Ecosystems located in mountainous regions, often characterized by a variety of climates and biodiversity depending on altitude.

High-elevation

Referring to areas or locations that are situated at a high altitude above sea level.

Plants

Multicellular organisms in the kingdom Plantae that photosynthesize using sunlight, carbon dioxide, and water to produce oxygen and glucose.

Moist Air

Air that contains a significant amount of water vapor, often leading to higher humidity levels and influencing weather patterns.