Question
The cost-volume-profit graph: a. plots the total fixed cost line and the operating income line. b. plots the total revenue line and the total cost
The cost-volume-profit graph:
a. plots the total fixed cost line and the operating income line.
b. plots the total revenue line and the total cost line.
c. plots the total fixed cost line and the total variable cost line.
d. All of these choices are correct
If the contribution margin per unit decreases, the break-even point in units:
a. will decrease.
b. will remain the same.
c. will increase.
d. cannot be determined from the information given.
The break-even point is when:
a. total revenue equals total cost.
b. total sales equals variable costs.
c. the company is operating at a loss.
d. the company is earning a small profit.
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