Final answer:
Once the break-even point is reached, net operating income will increase by the amount of the contribution margin for each additional unit sold, representing the extra revenue that goes towards profit after covering variable costs.
Step-by-step explanation:
Once the break-even point has been reached, net operating income will increase by the amount of the contribution margin for each additional unit sold. The contribution margin is the difference between the price at which a product is sold and its variable costs. It represents the incremental money generated for each product sold, which contributes to covering the fixed costs. Once these fixed costs are covered at the break-even point, any extra contribution margin contributes directly to the net operating income.
For instance, if you're selling a product at $25 per unit and the variable costs are $10, the contribution margin for each unit would be $15. After reaching the break-even point, every additional unit sold would increase the net operating income by $15.