Tennenholtz Company's break-even graph is depicted below. The line labeled "D" is:
A)The sales line.
B)The contribution margin line.
C)The total cost line.
D)The variable cost line.

Question

Tennenholtz Company's break-even graph is depicted below. The line labeled "D" is: 
A)The sales line. 
B)The contribution margin line. 
C)The total cost line. 
D)The variable cost line.

Quizplus · Accepted Answer

The line starting on the J axis where the F line (fixed cost line) intersects J that has the upward slope is the total cost line. The upward slope from the fixed cost line represents the variable costs.

Tennenholtz Company's Break-Even Graph Is Depicted Below