At the break-even point, total fixed costs equal total contribution margin.

Name: At the break-even point, total fixed costs equal total contribution margin.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

At the break-even point, total revenue equals total variable costs plus total fixed costs. This can also be expressed as total contribution margin (total revenue minus total variable costs) being equal to total fixed costs. Therefore, total fixed costs do equal total contribution margin at the break-even point.

At the Break-Even Point, Total Fixed Costs Equal Total Contribution