On a CVP graph, the increase in the operating income as the sales volume increases is equal to the additional contribution margin that is created by the sale of additional units.

Question

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On a Cost-Volume-Profit (CVP) graph, the slope of the line representing operating income increases as sales volume increases, which reflects the additional contribution margin generated from selling more units. The contribution margin is the difference between the sales price per unit and the variable cost per unit, and it contributes to covering fixed costs and increasing operating income.

On a CVP Graph, the Increase in the Operating Income