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At the break-even point: A. Fixed cost is always less than the contribution margin. B. Fixed...

At the break-even point:

A. Fixed cost is always less than the contribution margin.

B. Fixed cost is always equal to the contribution margin.

C. Fixed cost is always more than the contribution margin.

D. Fixed cost is always more than variable cost.

E. Fixed cost is always equal to variable cost.

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Answer #1

option B

Fixed cost is always equal to contribution margin

contribution margin = Sales - Variable cost

or

Contribution margin = fixed cost + profit

As we know break even point is a point of no profit or loss hence at contribution margin fixed cost equals the contribution margin

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