Which of the following statements is correct with regard to a Cost-Volume-Profit graph?

A Cost-Volume-Profit graph shows the maximum possible profit.

A Cost-Volume-Profit graph shows the break-even point as the intersection of the total sales revenue line and the total expense line.

A Cost-Volume-Profit graph assumes that total expense varies in direct proportion to unit sales.

A Cost-Volume-Profit graph shows the operating leverage as the gap between total sales revenue and total expense at the actual level of sales.