At the breakeven point, the contribution margin equals total:
A) Variable costs
B) Sales revenues
C) Selling and administrative costs
D) Fixed costs

Question

Quizplus · Accepted Answer

At the breakeven point, the contribution margin (sales revenue minus variable costs) equals total fixed costs. This is because at breakeven, there is no profit or loss, meaning all revenue has gone into covering variable and fixed costs.

At the Breakeven Point, the Contribution Margin Equals Total