The break-even point is where
A) total sales equal total variable costs.
B) contribution margin equals total fixed costs.
C) total variable costs equal total fixed costs.
D) total sales equal total fixed costs.

Question

Quizplus · Accepted Answer

The break-even point is where the company's total contribution margin equals its total fixed costs. This means that the company has earned enough revenue to cover its variable costs and make a profit that is equal to its fixed costs. Therefore, the correct choice is B.

The Break-Even Point Is Where