If a company is operating beyond its break-even point,sale of one more unit of product increases the company's profit by the amount of the unit contribution margin.

Question

Quizplus · Accepted Answer

This statement is true. Beyond the break-even point, each additional unit sold contributes to the company's profit by the amount of the unit contribution margin. This is because fixed costs have already been covered by the sales revenue up until the break-even point, and any further revenue generated by additional sales helps to increase the company's profit.

If a Company Is Operating Beyond Its Break-Even Point,sale of One