In a cost-volume-profit graph, the slope of the total cost line represents
A)the selling price per unit.
B)the contribution margin per unit.
C)the variable cost per unit.
D)total contribution margin.

Question

Quizplus · Accepted Answer

The slope of the total cost line represents the variable cost per unit. This is because as the quantity produced and sold increases, the total variable cost will also increase proportionately. Therefore, the slope of the total cost line will represent the variable cost per unit, as it shows the change in total cost caused by a change in quantity produced and sold.

In a Cost-Volume-Profit Graph, the Slope of the Total Cost