If sales volume exceeds the break-even point,the firm will experience:
A) an operating loss.
B) an operating profit.
C) an increase in plant and equipment.
D) an increase in share price.

Question

Quizplus · Accepted Answer

If sales volume exceeds the break-even point, the firm will be able to cover all its fixed and variable costs and generate additional revenue. This will result in an operating profit for the firm.

If Sales Volume Exceeds the Break-Even Point,the Firm Will Experience