In a graphic depiction of accounting break-even analysis,the larger the slope of the total cost line,the:
A) higher the level of fixed costs.
B) higher the level of total revenue.
C) higher the number of units sold.
D) higher the percentage of variable costs.

Question

Quizplus · Accepted Answer

The slope of the total cost line in a break-even analysis is determined by the variable costs per unit. A larger slope indicates a higher percentage of variable costs relative to fixed costs.

In a Graphic Depiction of Accounting Break-Even Analysis,the Larger the Slope