The breakeven point is the point at which:
A)total contribution margin equals total fixed costs
B)total fixed costs equal total variable costs
C)the total revenue line intersects the Y axis
D)the total cost line intersects the X axis

Question

Quizplus · Accepted Answer

The breakeven point is the point where the total revenue equals the total cost. At this point, the total contribution margin (which is the difference between total revenue and total variable costs) would equal total fixed costs. Therefore, option A is the correct choice. The other options are not correct as they do not reflect the definition of the breakeven point.

The Breakeven Point Is the Point at Which