Once Sales Reach the Break-Even Point,each Additional Unit Sold Will

question 40

Multiple Choice

Once sales reach the break-even point,each additional unit sold will:

• A) increase fixed cost by a proportionate amount.
• B) reduce the margin of safety.
• C) increase the company's operating leverage.
• D) increase profit by an amount equal to the per unit contribution margin.

---

Definitions:

American Paradox

The phenomenon where, despite high levels of wealth and consumer goods, Americans do not report correspondingly high levels of happiness.

Per Capita Income

The average income earned per person in a given area or population within a specified time period, often used as an indicator of economic health.

Depression

A common and serious medical illness that negatively affects how you feel, the way you think, and how you act, characterized by feelings of sadness or a loss of interest in activities.

Subjective Well-Being

An individual’s experience of overall life satisfaction, including satisfaction with particular domains of life, frequency of positive mood, and relative infrequency of negative mood.