Question: Please see the following Example from Forecast for Year 3: Gross Margin = $75,505 Contribution after marketing and fixed costs = -$80,409 Projected Net Contribution

Please see the following Example from Forecast for Year 3:

Gross Margin = $75,505

Contribution after marketing and fixed costs = -$80,409

Projected Net Contribution = -$4,904

Please tell me which of the following statements is TRUE about the Projected Net Contribution?

This is just a projection for telling how amazing you are in forecasting future net contribution for your countries

If projections hold in this manner, you may end up losing money in the year

You see no major problem because it is fine to have negative numbers when managing a company because fixed costs are not counted towards management bonuses

The - $5,904 is just the profit that you get for being the country manager

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