Multiple Choice
If a firm is currently at the break-even point, and it sells one more unit, what will happen to its operating profit?
A) It will increase by the unit selling price.
B) It will decrease by the unit variable cost.
C) It will increase by the unit contribution margin.
D) It will increase by the fixed cost divided by the unit contribution margin.
Correct Answer:
Verified
Correct Answer:
Verified
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