D. $7,200 E. $9,000 5, 6. At the break-even point which of the following is not true? A. Sales equal [variable expenses plus fixed expenses]. B. Variable expenses equal fixed expenses. c. Kontribution margin equals fixed expenses. D. Profit equals zero. Honest Company makes and sells a single product. The product's sales price is $100 per unit. Its variable expense per unit is $75. Its fixed expenses are $40,000. Assume that its break even point is 1,600 units. If the company sells 1,601 units, its profit will be: A. S$25 B. $100 C. -- $39,975 D. $125 2. Which of the following causes an increase in the break-even point? A. Increase in fixed expenses B. Increase in selling price C. Decrease in unit variable expense D. Decrease in total contribution margin 3 Which of the following is not true of operating leverage? A. It is measured by dividing contribution margin by profit. B. If the margin of safety is the higher, operating leverage is the higher C. If fixed costs are used more, its operating leverage becomes higher. D. If operating leverage is the higher, for a given sales change, the income change is the greater