The break-even point occurs when: sales revenue equals cost of goods sold. sales revenue equals total fixed costs. sales revenue equals total contribution margin. sales revenue equals total variable costs plus total fixed costs. QUESTION 13 For external reporting purposes, U.S. GAAP allows companies to use O only the traditional format of the income statement. only the contribution margin format of the income statement. the variable costing format. either the traditional format or the contribution margin format. QUESTION 14 All else being equal, an increase in fixed costs will: Decrease the breakeven point Increase the contribution margin ratio Decrease the contribution margin Increase operating leverage