Asked by
Elizabeth Tapinekis
on Nov 12, 2024Verified
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.
Verified Answer
GD
Learning Objectives
- Understand the principle of the break-even point and its essential significance in the framework of cost-volume-profit (CVP) analysis.