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:

Mikhail Gorbachev

The last leader of the Soviet Union, serving from 1985 to 1991, known for his policies of glasnost (openness) and perestroika (restructuring).

Soviet Union

A former federation of communist republics that existed from 1922 to 1991, officially known as the Union of Soviet Socialist Republics (USSR).

U.S. Economy

The economic system of the United States, characterized by a mixed economy with a high level of output, technological innovation, and a diverse industrial base.

Efficiency

The optimal use and allocation of resources to produce the maximum amount of goods and services with minimal waste.