On the cost-volume-profit graph, the area between the total cost line and the sales line before the break-even point represents The fixed cost amount a O The contribution margin per unit b O The loss area .c O The variable cost amount .d O The profit area .e O

On the cost-volume-profit graph, the area between the total cost line and the sales line before the break-even point represents The fixed cost amount a O The contribution margin per unit b O The loss area .c O The variable cost amount .d O The profit area .e O

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 1MC: The amount of a units sales price that helps to cover fixed expenses is its ____________________. A....

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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

100%

On the cost-volume-profit graph, the area between the total cost line and the sales line before the break-even point
represents
The fixed cost amount a O
The contribution margin per unit b O
.c O
The variable cost amount .d O
The loss area
The profit area
.e O

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How is the quantity factor for an increase or a decrease in the amount of sales computed in using contribution margin analysis?
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On the cost- volume -profit graph , the area between the total cost line and the sales line before the break -even point represents a. The profit area b. The variable cost amount c . The contribution margin per unit d. The fixed cost amount d. The loss area
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On a cost-volume-profit graph, when the Total Cost line is higher than the Total Revenue line, the difference represents Select one: O A. a positive return on the investment O B. a net loss O C. net income O D. not enough information is presented
In the cost-volume- profit graph (above), what is represented by the point marked "B"? Question 2 options: Breakeven point Fixed expenses Operating income area Operating loss area
In the cost-volume- profit graph (above), what is represented by the point marked "A"? Question 1 options: Breakeven point Fixed expenses Operating income area Operating loss area
Select the correct statement concerning the cost-volume-profit graph at right: a. The point identified by "B" is the break-even point. b. Line F is the variable cost line. c. At point B, profits equal total costs. d. Line E is the total cost line. Line F Line E Line D
compute for the following items: d. Contribution margin ratio e. Breakeven point in pesos f. Breakeven point in unit sales