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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