The breakeven point is the level at which total contribution

The breakeven point is the level at which total contribution

A equals total revenue

B equal totals variable costs

C Equal totals administrative costs

D equals total fixed costs

Solution

The correct option is

D equals total fixed costs

Contribution=Sales-Variable costs

At breaekven;the revenue equals total costs.Hence at breakeven;contribution=total fixed costs and hence net income is zero at breakeven.