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View Full Version : At the break-even-point contribution margin equals total fixed cost. True or False


Keita
Jul 15, 2011, 03:28 PM
Need some help

Unknown008
Jul 16, 2011, 06:02 AM
What is the definition of 'break-even-point'?
What does contribution margin mean?

If you know those two, you'll be able to answer this question easily. What do you get? :)

Keita
Jul 16, 2011, 10:33 PM
Well... break-even is all sums equal (0). Total contribution must cover (equal) all fixed cost. The answer is true!

Unknown008
Jul 17, 2011, 03:19 AM
Exactly! :)

bselgamal
Jan 29, 2013, 05:10 PM
At breakeven

SP
-VC
=CM
-FC
=zero

Brandonmys
Sep 10, 2013, 09:20 PM
True