Which of the following is true of the breakeven diagrams?
A)Cost is plotted along the vertical axis and unit sales (Q for quantity)along the horizontal axis.
B)Cost is plotted along the horizontal axis and unit sales (Q for quantity)along the vertical axis.
C)Fixed cost is plotted along the horizontal axis and variable cost along the vertical axis.
D)Revenue is plotted along the horizontal axis and unit sales (Q for quantity)along the vertical.

Question

Quizplus · Accepted Answer

In breakeven diagrams, cost (including both fixed and variable costs) is typically plotted along the vertical axis to show how total costs change with different levels of output, while unit sales or quantity (Q) is plotted along the horizontal axis to represent different levels of production or sales volume. This setup helps in visualizing the point at which total revenue equals total costs, indicating the breakeven point.

Which of the Following Is True of the Breakeven Diagrams