Once the break-even point has been reached,each additional unit sold increases the company's operating profit by the amount of the unit CM.

Question

Quizplus · Accepted Answer

This is true because once the break-even point has been achieved, all additional units sold will have a contribution margin (CM) that is greater than the variable cost per unit. This means that each additional unit sold will contribute to the company's operating profit by the amount of the unit CM.

Once the Break-Even Point Has Been Reached,each Additional Unit Sold