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vichka [17]
3 years ago
11

If a company is operating beyond its break-even point, sale of one more unit of product increases the company's profit by the am

ount of the unit contribution margin
a. True
b. False
Business
1 answer:
zhenek [66]3 years ago
5 0

Answer:

If a company is operating beyond its break-even point, sale of one more unit of products increases the company's profit by the amount of the unit contribution margin.

The correct answer is A

Explanation:

If a company operates beyond the break-even point, any sale of an additional unit increases the company's profit by the amount of the unit contribution margin. This is due to the fact that the fixed cost remains  constant and any increase in sale increases contribution and profit by the same amount.                                                                                                

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Suppose that the wage rate is $30 per hour, and the firm sells each unit of output for $6. Using the data from Table 7.3, how ma
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I found this data from Table 7.3
<span> <span> </span><span><span> Labor Input Output
</span> <span> 0                          0
</span> <span> 1                          40
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Labor Cost = Labor Input x 30
Output Sales = Output x 6
Revenue = Sales - Cost

</span></span></span><span> <span> </span><span><span> Labor cost        Output Sales
</span> <span> 0                                    0
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</span></span></span><span> <span> </span><span><span> Labor Input     Output      Labor cost    Output Sales <span>   Revenue</span>
</span> <span> 0                         0                 0                      0                        0
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</span> <span> 4                     100             120                    600                   480
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Labor Unit 4 and 5 both have a revenue of 480. It is the maximum revenue. I think the best option would be C. 4 UNITS.

Lesser cost to the company at a maximum revenue. </span></span></span>
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