What does the term "breakeven point" mean?
A) The level of sales in which total contribution margin equals total fixed costs.
B) The point in which total variable costs equal total fixed costs.
C) The level of sales in which total contribution margin is zero.
D) The point in which total sales equal total contribution margin.
E) The point in which total sales equal total fixed costs.

Question

Quizplus · Accepted Answer

The breakeven point is the level of sales at which total contribution margin (sales minus variable costs) equals total fixed costs, resulting in zero profit or loss.

What Does the Term "Breakeven Point" Mean