Once the break-even point has been reached,increases in contribution margin will be reflected dollar for dollar in increased operating income.

Question

Quizplus · Accepted Answer

This statement is true. Once the break-even point is reached, any increase in contribution margin will directly increase the operating income. This is because all fixed costs have been covered by the sales revenue and any additional revenue will now contribute to profit.

Once the Break-Even Point Has Been Reached,increases in Contribution Margin