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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