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IceJOKER [234]
2 years ago
14

At the break-even point:

Business
1 answer:
OlgaM077 [116]2 years ago
5 0

Answer:

D. Contribution margin would be equal to total fixed costs

Explanation:

As we know that

break even point is the point at which the firm is earning no profit or no loss suffered

In equation, it is

Total cost = Total revenues

In addition,

The contribution margin = Sales - variable expenses

Therefore

The contribution margin = Fixed cost = break even point

If we subtract the contribution margin from the fixed cost the amount should be zero which implies the break even point

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