7:48 Cody Carter: Attempt 1 estion 12 (2 points) f the contribution margin is no

Question

7:48 Cody Carter: Attempt 1 estion 12 (2 points) f the contribution margin is not sufficient to cover fixed expenses: O total profit equals total expenses O contribution margin is negative. O a loss occurs variable expenses equal contribution margin. Save uestion 13 (2 points) In its first year of operations, Bronfren Corporation produced 800,000 sets and sold 780,000 sets of artificial tan lines. What would have happened to net operating income in this first year under the following costing methods if Bronfren had produced 0,000 fewer sets? (Assume that Bronfren has both variable and fixed production costs.) Variable costingAbsorption costing A) B) C) D) No effect Decrease Decrease No effect Increase Increase Decrease Decrease O Choice A Choice B ChoiceC Choice D Save

Explanation / Answer

Dear student, only one question is allowed at a time. I am answering the first question

Contribution margin

= Sales – Variable costs

Profit

= Contribution – Fixed costs

So, when contribution margin is not sufficient to cover the fixed expenses, there will be negative profit or loss to the organization

So, as per above discussion, option C is the correct option

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