E 7. 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

c. B

b. D

d. F 2. The breakeven point in sales dollars is

a. C

c. A

b. D

d. G 3. At volume F, total contribution margin is

a. C

c. E

b. D

d. G 4. Operating income is represented by area

a. KDL

c. BDC

b. KCJ

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

a. H

c. I

b. G

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

a. HI minus DE

c. BC minus DF

b. DF minus HJ

d. AB minus DE

Transcribed Image Text:

$ D A B G K H! L M x C F Volume