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.

---

Definitions:

Job-Order Costing

An accounting method where costs are assigned to specific jobs or batches, used in situations where products are distinctly different.

Selling Price

The amount of money charged for a product or service, determined by considering costs, market demand, competition, and profitability.

Unit Product Costs

The calculated cost assigned to a single unit of product, typically including direct materials, direct labor, and allocated overhead.

Markup

Markup refers to the amount added to the cost price of goods to cover overhead and profit, calculated as a percentage of the cost.