Figure 13-7

-In the break-even chart in Figure 13-7 above,the wedge ABC represents the firm's
A)fixed costs.
B)break-even point.
C)loss.
D)profit.
E)total revenue.

Question

Figure 13-7
 
-In the break-even chart in Figure 13-7 above,the wedge ABC represents the firm's
A)fixed costs. 
B)break-even point. 
C)loss. 
D)profit. 
E)total revenue.

Quizplus · Accepted Answer

Figure 13-7 is a break-even chart that depicts a graphic presentation of a break-even analysis for a picture frame store.The wedge ABC represents the area where the firm incurs a loss because its total costs exceed its total revenues when the quantity of picture frames sold is less than 400 units-the firm's break-even point.

Figure 13-7 -In the Break-Even Chart in Figure 13-7 Above,the Wedge ABC