When a company has a contribution margin equaling total fixed costs, it is operating at
A) zero gross margin.
B) break-even point.
C) zero contribution margin.
D) positive pretax income.

Name: When a company has a contribution margin equaling total fixed costs, it is operating at A) zero gross margin. B) break-even point. C) zero contribution margin. D) positive pretax income.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Break-even represents the point at which contribution margin is equal to, or covers, total fixed costs.

When a Company Has a Contribution Margin Equaling Total Fixed