Consider the following cost-volume-profit graph: The line designated by the letter (A)represents which of the following?
A) Total revenue
B) Total cost
C) Total fixed cost
D) None of these is correct.

Question

Consider the following cost-volume-profit graph:  The line designated by the letter (A)represents which of the following?
A) Total revenue 
B) Total cost 
C) Total fixed cost 
D) None of these is correct.

Quizplus · Accepted Answer

The line designated by letter (A) on a cost-volume-profit graph represents the total revenue. This line shows the amount of revenue earned as the level of activity, such as production or sales, changes. The slope of the line represents the unit selling price, and the point where the line intersects the y-axis represents the fixed cost component of revenue.

Consider the Following Cost-Volume-Profit Graph: the Line Designated by the Letter