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 break-even analysis is determined by variable costs. A steeper slope indicates a higher percentage of variable costs relative to fixed costs.

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