Identify the letter of the point, line segment, or area of the breakeven graph shown below that

Question:

Identify the letter of the point, line segment, or area of the breakeven graph shown below that correctly completes each of the following statements:

1. The maximum possible operating loss is

a. A

b. D

c. B

d. F

2. The breakeven point in sales dollars is

a. C

b. D

c. A

d. G

3. At volume F, total contribution margin is

a. C

b. D

c. E

d. G

4. Operating income is represented by area

a. KDL

b. KCJ

c. BDC

d. GCJ

5. At volume J, total fixed costs are represented by

a. H

b. G

c. I

d. J

6. If volume increases from F to J, the change in total costs is

a. HI minus DE

b. DF minus HJ

c. BC minus DF

d. AB minusDE

Identify the letter of the point, line segment, or area

Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...