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:

Valid Inference

A logical conclusion drawn from premises known or assumed to be true.

Ominous Results

Findings or outcomes that are perceived as threatening or indicative of future negative events.

Reason with Certainty

The process of drawing conclusions or making determinations based on clear, indisputable evidence or principles.

Applying a Generalization

The process of applying a broad principle or rule to specific instances or situations.