If Company X is operating above its break-even point, which of the following is always true?...
If Company X is operating above its break-even point, which of the following is always true?
A) Its total variable costs are less than its total fixed costs.
B) Its total contribution margin is greater than its total variable costs.
C) Its total contribution margin is greater than its total fixed costs.
D) Its selling price is higher than per-unit variable cost.
Homework Answers
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correct answer is option : C) Its total contribution margin is greater than its total fixed costs.
At break even contribution margin is equal to the total fixed cost. so if the X is operating above the break even its contribution margin will be greater than its total fixed cost.
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If Company X is operating above its break-even point, which of
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