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.

---

Definitions:

Wage Increases

Adjustments made to an employee's salary or hourly rate, typically to adjust for factors like cost of living, performance, or market conditions.

Problems

Issues, obstacles or situations that require a solution or need to be dealt with.

Right-to-Work Law

Legislation that prohibits union security agreements between companies and workers' unions, preventing the requirement of union membership for employment.

Discrimination

Unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, or sex.