Thursday, 8 August 2013

Once the break-even point is reached: variable expenses will remain constant in total. the total contribution margin changes from negative to positive. the contribution margin ratio begins to decrease. net operating income will increase by the unit contribution margin for each additional item sold.

Once the break-even point is reached:

variable expenses will remain constant in total.

the total contribution margin changes from negative to positive.

the contribution margin ratio begins to decrease.

net operating income will increase by the unit contribution margin for each additional item sold.
Answer
net operating income will increase by the unit contribution margin for each additional item sold.

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