Questions: Multiple Select Question Select all that apply The break-even point is the sales level at which a company: (Check all that apply.) - contribution margin equals variable costs. - incurs a loss. - has a profit equal to fixed costs. - contribution margin equals fixed costs. - has income of 0.

The answers are:

• contribution margin equals fixed costs.
• has income of $0.

This is incorrect. The contribution margin is calculated as sales revenue minus variable costs. Therefore, it cannot be equal to variable costs.

This is incorrect. At the break-even point, the company neither incurs a loss nor makes a profit. It is the point where total revenues equal total costs.

This is incorrect. At the break-even point, the company does not have a profit. The profit is zero because total revenues equal total costs.

This is correct. At the break-even point, the contribution margin (sales revenue minus variable costs) equals the fixed costs.

This is correct. At the break-even point, the company's total revenues equal its total costs, resulting in an income of $0.