Without resorting to computations, what is the total contribution margin at the break even point?
we know break even sales for given company is zero, from formula
break even sales units=total fixed cost/contribution margin units
hence at break even, Total contribution margin=(total fixed cost/break even units) *number of units
contribution margin= total fixed cost less variable costs implying if sales at break even =0 then,
total contribution .in is approximately=variable cost
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