At the break-even point
A) sales equal total variable costs.
B) contribution margin equals total variable costs.
C) contribution margin equals total fixed costs.
D) sales equal total fixed costs.

Question

Quizplus · Accepted Answer

At the break-even point, the contribution margin (sales minus variable costs) equals total fixed costs. This is because all the variable costs have been covered by the sales, and the remaining income exactly covers the fixed costs, resulting in zero profit or loss.

At the Break-Even Point