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Elizabeth Tapinekis
on Nov 12, 2024

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The point where the profit line intersects the horizontal axis on the profit-volume chart represents the

A) maximum possible operating loss
B) maximum possible operating income
C) total fixed costs
D) break-even point

Profit-Volume Chart

A chart used to assist management in understanding the relationship between profit and volume.

Break-Even Point

The level of production or sales at which total costs equal total revenues, resulting in no net loss or gain.

Horizontal Axis

A graph's base line for plotting and reading values, typically representing time or categories.

  • Understand the principle of the break-even point and its essential significance in the framework of cost-volume-profit (CVP) analysis.
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Gaurav DodiyaNov 15, 2024
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