Figure 11-6
-A break-even chart is a graphic presentation
A) that shows the maximum number of units that will be sold at a certain price.
B) of a break-even analysis that shows where total revenue and total cost intersect to identify profit or loss for a given quantity sold.
C) that relates variable costs in terms of product or service substitutes in order to determine which items or services would least affect total revenues.
D) that relates profits and revenues versus total costs in order to determine the time frame in which a company could achieve profitability.
E) is a form of scatter graph used to identify specific activities or items that are creating the greatest return on investment.

Question

Figure 11-6
-A break-even chart is a graphic presentation
A) that shows the maximum number of units that will be sold at a certain price. 
B) of a break-even analysis that shows where total revenue and total cost intersect to identify profit or loss for a given quantity sold. 
C) that relates variable costs in terms of product or service substitutes in order to determine which items or services would least affect total revenues. 
D) that relates profits and revenues versus total costs in order to determine the time frame in which a company could achieve profitability. 
E) is a form of scatter graph used to identify specific activities or items that are creating the greatest return on investment.

Quizplus · Accepted Answer

A break-even chart graphically represents a break-even analysis, showing the point where total revenue equals total cost, indicating no profit or loss.

Figure 11-6 -A Break-Even Chart Is a Graphic Presentation