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.

2 answers
Question:

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.

Answers

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

Answer:a loss occursExplanation:

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