The main purpose of the gross margin is to cover fixed costs, and when it does, you have your break-even point.

Name: The main purpose of the gross margin is to cover fixed costs, and when it does, you have your break-even point.
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Quizplus · Accepted Answer

The gross margin is the difference between revenue and cost of goods sold, and its main purpose is to cover not only fixed costs but also contribute to profits. However, once the gross margin covers fixed costs, the business has reached its break-even point.

The Main Purpose of the Gross Margin Is to Cover