If a Firm Is Currently at the Break-Even Point, and It

question 41

Multiple Choice

If a firm is currently at the break-even point, and it sells one more unit, what will happen to its operating profit?

• A)It will increase by the unit selling price.
• B)It will decrease by the unit variable cost.
• C)It will increase by the unit contribution margin.
• D)It will increase by the fixed cost divided by the unit contribution margin.

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Definitions:

Gag Rule

Historical policies or practices that forbid public discussion or debate on a particular topic, notably slavery in the 19th-century United States Congress.

Congress

The national legislative body of the United States, consisting of two houses: the Senate and the House of Representatives.

Antislavery Petitions

Formal requests made to a governing body or public official, aiming to end or restrict the institution of slavery.

David Walker

An African American abolitionist, writer, and anti-slavery activist who published an appeal in 1829 calling for the end of slavery and for equal rights for black people.