At the break-even point,fixed costs are always
A)less than the contribution margin.
B)equal to the contribution margin.
C)more than the contribution margin.
D)more than the variable cost.

Question

Quizplus · Accepted Answer

The break-even point is the point at which the company's total revenue equals its total costs (fixed and variable costs). At this point, there is no profit or loss. 
The contribution margin is the difference between total revenue and total variable costs. Therefore, at the break-even point, fixed costs must be equal to the contribution margin. 
Option A states that fixed costs are less than the contribution margin, which is incorrect as fixed costs cannot be less than the contribution margin. 
Option C states that fixed costs are more than the contribution margin, which is also incorrect as this would result in a loss rather than the break-even point. 
Option D states that fixed costs are more than the variable costs, which may or may not be true, but it is not relevant to determining the break-even point.

At the Break-Even Point,fixed Costs Are Always