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The break-even point is that level of activity where: sales revenue equals total variable cost. sales revenue equals fixed cost.total contribution margin equals the sum of variable cost plus fixed cost. contribution margin equals fixed cost. variable cost equals fixed cost.

Respuesta :

Answer:

Contribution margin equals fixed cost.

Explanation:

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

i.e

Total cost = Total revenues

Plus,

The contribution margin = Sales - variable expenses

So,

The contribution margin = Fixed cost = break even point

So if we deduct the contribution margin from the fixed cost so the amount should be zero that implies the break even point

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