Contribution margin is equal to fixed costs at the break-even point.At break-even point,profit,or contribution margin minus fixed costs,is zero,so contribution margin must equal fixed costs.

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Quizplus · Accepted Answer

This statement is true. The break-even point is reached when total revenue equals total costs, and at this point, the contribution margin covers exactly the fixed costs, resulting in zero profit. Therefore, contribution margin is equal to fixed costs at the break-even point.

Contribution Margin Is Equal to Fixed Costs at the Break-Even