At the break-even point profit is:Group of answer choicesequal to the contribution margin.zero.equal to break-even units multiplied by fixed costs.equal to fixed costs multiplied by contribution margin per unit.
Question
At the break-even point profit is:Group of answer choicesequal to the contribution margin.zero.equal to break-even units multiplied by fixed costs.equal to fixed costs multiplied by contribution margin per unit.
Solution
At the break-even point, profit is zero. This is because the break-even point is the point at which total revenue equals total costs, meaning there is no net gain or loss - hence, zero profit.
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