I still don't get the difference between the two formulas for breakeven:
(1) Revenues - Costs = 0
(2) Fixed Costs / Contribution Margin
What is the difference here and what does contribution margin inherently tell us? And what are the effects of different cost structure (e.g. one company has higher fixed costs whereas the other company has higher variable costs/unit if number of units is exactly the same)? Thanks a lot!