Once the break-even point is reached,which of the following statements is true?

Question

Quizplus · Accepted Answer

Once the break-even point is reached, it means that the company is selling enough units to cover its fixed expenses and its variable expenses. Therefore, any additional unit sold will result in a positive contribution margin, which will increase the net income by the unit contribution margin. The total contribution margin and the variable expenses will increase proportionally with each additional unit sold. The contribution margin ratio will remain constant as long as the selling price and variable costs per unit remain constant.

Once the Break-Even Point Is Reached,which of the Following Statements