Question

when contribution is negative but less than fixed cost​

Answer 1

Answer:

Explanation:

If the contribution margin is too low or is negative, this will mean loss for the company. The company now has £75.00 leftover to cover their fixed costs - such as rent, payroll, etc. If the margin is not high enough to cover the fixed costs, there will be a deficit in the company.

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Answer 2

Answer:

If the contribution margin is too low or is negative, this will mean loss for the company. The company now has £75.00 leftover to cover their fixed costs - such as rent, payroll, etc. If the margin is not high enough to cover the fixed costs, there will be a deficit in the company.