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(TCO 3) The breakeven point occurs where:
Total fixed costs and total revenue intersect
Total costs and total revenue intersect
Total profit margin and total costs intersect
Total variable costs and total revenue intersect
Total revenue outpaces total avoidable fixed costs
(TCO 3) Increasing marginal volume for cost payers makes economic sense if:
Cost payers account for 100 percent of your present volume and fixed costs are high.
Bad debts are low.
Fixed costs are high and present cost payer volume is small.