Question

At the break-even point, fixed costs are always

a. less than the contribution margin
b. equal to the contribution margin
c. more than the contribution margin
d. more than the variable cost

Answer 1

At the break-even point, fixed costs are always equal to the contribution margin.

Step-by-step explanation:

The break-even point is the point at which a business neither makes a profit nor incurs a loss. At this point, the total revenue equals the total cost. Therefore, the answer to the question is 'b. equal to the contribution margin.'