Use the following information to answer the following Questions

-Refer to the figure above. At a given sales volume, the vertical distance between the fixed cost line and the total cost line represents:
A) fixed cost.
B) variable cost.
C) profit or loss at that volume.
D) semivariable cost.
E) the safety margin.

Question

Use the following information to answer the following Questions

-Refer to the figure above. At a given sales volume, the vertical distance between the fixed cost line and the total cost line represents:
A) fixed cost. 
B) variable cost. 
C) profit or loss at that volume. 
D) semivariable cost. 
E) the safety margin.

Quizplus · Accepted Answer

The vertical distance between the fixed cost line and the total cost line represents the variable cost at a given sales volume. This is because fixed costs remain constant regardless of the volume of goods or services produced, while total costs include both fixed and variable costs. The increase in total costs as production increases is due to variable costs.

Use the Following Information to Answer the Following Questions