How might a company with a negative contribution margin reach the break-even point?
A)Increase sales volume.
B)Decrease sales volume.
C)Decrease fixed costs.
D)Decrease variable costs.

Name: How might a company with a negative contribution margin reach the break-even point? A)Increase sales volume. B)Decrease sales volume. C)Decrease fixed costs. D)Decrease variable costs.
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Question

Quizplus · Accepted Answer

Decreasing variable costs can help turn a negative contribution margin positive, which is necessary to reach the break-even point.

How Might a Company with a Negative Contribution Margin Reach