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.

Question

Quizplus · Accepted Answer

After a company exceeds the breakeven point, the total contribution margin increases, as the company is now making a profit on each unit sold. The profit per unit may not necessarily equal the contribution margin ratio, fixed costs do not become zero, and the contribution margin ratio may or may not increase depending on the specific circumstances.

After a Company Exceeds the Breakeven Point