Final answer:
Fixed costs affect the contribution margin by influencing the breakeven point and the level of profitability.
Step-by-step explanation:
Fixed costs affect the contribution margin by influencing the breakeven point and the level of profitability. The contribution margin is the difference between the sales revenue and the variable costs, and it is used to cover the fixed costs and generate profit. When fixed costs are high, the contribution margin will need to be higher in order to cover those costs and achieve a desired level of profit. Conversely, if fixed costs are low, the contribution margin can be lower and still result in profitability.