At a break-even point of 400 units,variable costs were $400 and fixed costs were $200.What will the 401^st unit sold contribute to operating profits before income taxes? A) $0.50 B) $1.00 C) $1.50 D) $2.00

Question

Quizplus · Accepted Answer

The 401st unit sold will contribute $1.00 to operating profits before income taxes. This is because the variable cost per unit is $1.00, and the fixed costs are already covered by the break-even point.

At a Break-Even Point of 400 Units,variable Costs Were $400