After the Level of Volume Exceeds the Break-Even Point

question 44

Multiple Choice

After the level of volume exceeds the break-even point

• A)the contribution margin ratio increases.
• B)the total contribution margin exceeds the total fixed costs.
• C)total fixed costs per unit will remain constant.
• D)the total contribution margin will turn from negative to positive.

---

Definitions:

Shares of the Business

Equity units of a corporation that represent ownership interest held by shareholders, giving them a claim on the company's profits in the form of dividends.

Stock

A type of financial security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings.