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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.

Respuesta :

danieelarojas

Answer:

a loss occurs

Explanation:

When the contribution margin is not enough for covering up the fixed expenses so the loss occurs.

The following information should be considered:

  • Contribution margin = Sales - variable cost.
  • Net income or loss = contribution margin - fixed cost.
  • Now if the company has the profit so that means the contribution margin should be enough for covering up the fixed expenses.
  • And, if the company has a loss so the contribution margin is not enough for covering up the fixed expenses.

Therefore we can conclude that option c is correct.

Learn more: brainly.com/question/17100497

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