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:

Second Messenger

Intracellular signaling molecules released by the cell in response to exposure to extracellular signaling molecules.

Thyroxine

A hormone produced by the thyroid gland that regulates metabolism, energy generation, and growth and development.

FSH and LH

Follicle-Stimulating Hormone (FSH) and Luteinizing Hormone (LH) are gonadotropins secreted by the pituitary gland, involved in the regulation of reproductive processes including the menstrual cycle and spermatogenesis.

Norepinephrine

Neurotransmitter of the postganglionic fibers in the sympathetic division of the autonomic system; also, a hormone produced by the adrenal medulla. Sometimes referred to as noradrenaline.