After a Company Exceeds the Breakeven Point

question 8

Multiple Choice

After a company exceeds the breakeven point:

• A) The total contribution margin increases.
• B) The profit per unit equals the contribution margin ratio.
• C) Fixed costs become zero.
• D) The contribution margin ratio increases.

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Definitions:

War Powers Resolution

A federal law intended to check the U.S. President's power to commit the United States to armed conflict without the consent of Congress.

Commander-in-Chief

The title given to the person who holds supreme command over the armed forces of a nation; in the United States, this position is held by the President.

Armed Forces

The military forces of a country, including the army, navy, air force, and sometimes others, responsible for defense and security.

IMF

The International Monetary Fund, an organization of 190 countries, working to foster global monetary cooperation, secure financial stability, and reduce poverty around the world.