Contribution Margin Is Equal to Fixed Costs at the Break-Even

question 77

True/False

Contribution margin is equal to fixed costs at the break-even point.At break-even point,profit,or contribution margin minus fixed costs,is zero,so contribution margin must equal fixed costs.

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Definitions:

Dialectical Method

A philosophical methodology, especially associated with Hegel and Marx, emphasizing the resolution of contradictions in historical, social, and intellectual phenomena.

Capitalism

An economic system characterized by private or corporate ownership of goods and services, where investment and the production, distribution, and prices of goods are determined mainly by competition in a free market.

G.W.F. Hegel

A German philosopher best known for his contributions to German idealism, particularly his concepts of the absolute, the dialectic process, and the historical development of consciousness.

Proletariat

The working-class people or those without access to the means of production, who sell their labor to live, according to Marxist theory.