1. Once the break-even point is reached, which of the following statements is true?

a. the contribution margin ratio will remain unchanged

b. all of these answers are correct

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

d. the total contribution margin remains positive if the selling price is greater than the variable cost

2. Last year, Perry company reported profits of $5,000. Its variable expenses totalled $60,000 or $6 per unit. The unit contribution margin was $3.00 per unit. The break-even point in units for Perry company is:

a. 11,000 units

b. 8,333.33 units

c. 10,000 units

3. At a break-even point of 400 units sold, variable expenses were $4,000 and fixed expenses were $5,000. What will the 401ST unit sold contribute to profit?

a. $10

b. $22.50

c. $12.50