If the break-even point is 300 units and the contribution margin is $30 per unit, then every unit sold above 300 will contribute $30 to profit.

Question

Quizplus · Accepted Answer

This statement is true according to the definition of contribution margin. The contribution margin represents the amount of revenue that contributes towards covering fixed costs and ultimately profits. In this case, if the break-even point is 300 units and the contribution margin is $30 per unit, then every additional unit sold beyond 300 will contribute $30 towards profit, as all fixed costs have already been covered.

If the Break-Even Point Is 300 Units and the Contribution