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:

Strecker Synthesis

A chemical synthesis method for producing amino acids by reacting an aldehyde with ammonium chloride and potassium cyanide.

Tryptophan

An essential amino acid used by the body to produce serotonin and melatonin, found in various protein-rich foods.

α-Ketoacid

An organic compound containing both a ketone and a carboxylic acid group, with the ketone group located at the second position from the acid.

α-Aminoacid

A type of amino acid in which the amino group is attached to the carbon atom immediately next to the carboxyl group, forming the backbone of proteins.