After the Break-Even Point Is Reached, a Firm That Has

question 135

Multiple Choice

After the break-even point is reached, a firm that has a per-unit contribution margin of $20 will have a $500 increase in profits when sales increase by:

• A) 20 units
• B) 15 units
• C) 25 units
• D) 50 units

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Definitions:

Annual Dividend

The total amount of dividends that a company pays out to its shareholders over a year.

Market Rate

The prevailing interest rate available in the marketplace on investments or loans.

Dividend Growth Rate

The annualized percentage rate of growth of a company's dividend payments, indicating the stability and growth potential of the dividends over time.

Investor's Return

The profit or loss realized by an investor, typically reflected as a percentage of the investment's initial value.