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:

Confederate Congress

The legislative body of the Confederate States of America during the American Civil War, responsible for creating and enforcing laws within the Confederacy.

Class Anger

Resentment or anger arising from perceived disparities and injustices between different social classes.

North Carolina Legislature

The legislative body of the state of North Carolina, consisting of two chambers: the Senate and the House of Representatives.

Wealthy Southerners

Individuals from the southern United States before the Civil War who had accumulated wealth, typically through agricultural plantations and the labor of enslaved people.