What Is the Contribution Margin at the Break-Even Point

question 99

Multiple Choice

What is the contribution margin at the break-even point?

• A)It equals total fixed costs.
• B)It is zero.
• C)It is total fixed costs plus total revenues.
• D)It is greater than variable costs.

---

Definitions:

Deferral period

A span of time during which payments, obligations, or other actions are postponed or delayed.

Compounded quarterly

The process of calculating interest on both the initial principal and the accumulated interest from previous periods, applied every three months.

Quarterly withdrawals

The act of taking out money from a financial account or investment four times a year, often at the end of each fiscal quarter.

Registered Retirement Income Fund

A retirement savings plan that holds investment products and pays out retirement income.