Figure 13-7

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

Question

Figure 13-7
 
-In the break-even chart in Figure 13-7 above,the triangular area GAF represents the firm's
A)fixed costs. 
B)break-even point. 
C)variable costs. 
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 triangular area GAF represents the profit the firm realizes based on the total revenue (GCD)generated from the quantity of picture frames sold less the total costs (fixed costs EBCD plus variable costs FBE)it incurs to generate these sales.

Figure 13-7 -In the Break-Even Chart in Figure 13-7 Above,the Triangular Area