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.

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Definitions:

Cork Cambium

A layer of tissue in plants that produces cork, a protective barrier for the surface of stems and roots.

Ground Tissue

The bulk of most plant tissues, filling the space between the epidermis and vascular tissue systems, involved in photosynthesis, storage, and support.

Cork Cambium

A layer of tissue in plants that produces cork, a protective and waterproof material found on the outer surface of bark.

Cork Parenchyma

One or more layers of parenchyma cells produced inwardly by the cork cambium.