is breakeven equal to fixed cost?
<answer> No, break-even revenue is not equal to the fixed cost. <context> Break-even revenue equals fixed costs divided by contribution margin ratio, which equals contribution margin divided by total revenue. The contribution margin is equal to the difference between revenue and variable costs. Fixed costs include rent, insurance, administrative salaries, maintenance and property taxes. A small business would incur some fixed costs even if it doesn't have any revenue.