contestada

At the break-even point,
a.total contribution margin equals total fixed cost.
b.total revenue equals variable cost.
c.total sales equals total fixed cost.
d.total margin of safety equals variable cost.
e.total fixed cost equals variable cost.

Respuesta :

jepessoa

Answer:

A) total contribution margin equals total fixed cost.

Explanation:

The formula for calculating break even point is:

  • Break even point = total fixed costs / contribution margin per unit

The contribution margin is the difference between the selling price and the variable cost per unit.

Total contribution margin is calculated by multiplying the contribution margin per unit times the total units sold. So another way of writing the break even formula is:

contribution margin per unit x break even point in units = total fixed costs