Knowledge Check 03

Once the break-even point has been reached, net operating income will increase by the amount of the _____ for each additional unit sold.

• unit contribution margin

• unit selling price

• variable expense per unit

• fixed expense per unit

Knowledge Check 04

Break-even point is the level of sales at which ______.

• total profits equals total costs

• total profits exceed total costs

• total revenue equals total costs

• total sales equal total projections

Knowledge Check 01 Atlas Corporation sells 100 bicycles during a month. The contribution margin per bicycle is $200. The monthly fixed expenses are $8,000. Compute the profit from the sale of 100 bicycles $12,000 $10,000 $20,000 $8,000 Knowledge Check 02 Atlas Corporation sells 100 bicycles during a month at a price of $500 per unit. The variable expenses amount to $300 per bicycle. How much does profit increase if it sells one more bicycle? O $500 $300 O $200 $20,200