Select the correct statement concerning the cost volume-profit graph that follows:

Question

Quizplus · Accepted Answer

The point identified by 'A' is the break-even point, as it is where the total cost line intersects with the total revenue line, meaning that the company is neither making a profit nor a loss at that point. Line F is the total revenue line, while Line D is the total cost line. There is no point on the graph where profits equal total costs, so option D is incorrect.

Select the Correct Statement Concerning the Cost Volume-Profit Graph That