What happens when a company sells more units than the break-even point?

Question

Quizplus · Accepted Answer

When a company sells more units than the break-even point, its profits are positive. This is because the company has surpassed the point where it is covering all of its variable costs and making a contribution toward its fixed costs. As a result, the company's revenue from selling additional units will exceed its variable costs per unit, leading to a net profit.

What Happens When a Company Sells More Units Than the Break-Even