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At the tie point, the total contribution margin is equal....?

At the tie point, the total contribution margin is equal....?
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Answer #1

At the tie point, the total contribution margin is equal to Fixed Cost.

Working notes,

At Break Even Point,

                                  Sales = Fixed cost + Variable cost……………………....……eq(1)

And

                                Contribution = sales - variable cost……………….…………..eq(2)

Putiing eq(1) in eq(2)

  Contribution = Fixed cost + Variable cost – variable cost

Contribution = Fixed cost

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