The break-even point is that level of activity where: variable cost equals fixed

Question

The break-even point is that level of activity where:

variable cost equals fixed cost.

total contribution margin equals fixed cost.

total contribution margin equals the sum of variable cost plus fixed cost.

sales revenue equals total variable cost.

sales revenue equals fixed cost.

variable cost equals fixed cost.

total contribution margin equals fixed cost.

total contribution margin equals the sum of variable cost plus fixed cost.

sales revenue equals total variable cost.

sales revenue equals fixed cost.

Explanation / Answer

contribution margin is equal to Sales-Variable expenses

Breakeven point is the point where there would be no profit/no loss for the firm,ie,total revenues=total expenses

Hence at breakeven;contribution margin=Fixed costs for the company.
Hence the correct option is B.

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