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

question 21

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) Operating 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:

CPI

By applying a weighted average methodology, the Consumer Price Index tracks the fluctuations in average prices for a comprehensive array of consumer goods and services, such as medical care, food, and transportation services.

CPI

It's an index that measures the average prices of a basket of consumer services and products, like food, transportation, and healthcare, through their weighted average, known as the Consumer Price Index.

Base Year

A specific year against which economic or financial data is compared to measure changes in prices, outputs, or other economic indicators over time.

Consumer Price Index

An indicator assessing the mean fluctuation over time in the expenses borne by city dwellers for a designated assortment of consumer products and services.