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Business, 11.02.2020 22:57 emma3216

If a budgetary weighted average contribution margin (WACM) percentage has beendeveloped with an expected level of revenue and a planned fixed cost and the budgetaryWACM percentage is in fact achieved in the next (future) time period, could the organizationstill face losses if the total revenue drops below the budgeted level or total fixed costsincrease beyond the budgeted levels? Can you explain how losses still might occur eventhough the planned WACM percentage is being realized in the future time period?

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