Once the Break-Even Point Is Reached,which of the Following Statements

question 85

Multiple Choice

Once the break-even point is reached,which of the following statements is true?

• A) The total contribution margin changes from negative to positive.
• B) Net income will increase by the unit contribution margin for each additional item sold.
• C) Variable expenses will remain constant in total.
• D) The contribution margin ratio begins to decrease.

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Definitions:

Multitasking

The ability to deal with more than one task simultaneously.

Divided Attention

Concentrating on more than one activity at the same time.

Mental Imagery

The process of creating visual representations in the mind, akin to visualizing scenarios or objects not currently present.

Rehearsal

The practice of repeatedly going over material or skills in order to learn or perfect them.