Once the Break-Even Point Has Been Reached, Increases in Contribution

question 114

True/False

Once the break-even point has been reached, increases in contribution margin will be reflected dollar for dollar in increased net income.

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Definitions:

Fixed Tariff

A preset tax or duty to be paid on particular imports or exports, which remains unchanged over a period regardless of economic conditions.

Ad Valorem Tariff

A type of tax calculated as a percentage of the value of the goods being imported or exported.