Exhibit 21-7 Use the cost-volume-profit graph below to answer the following question(s).

-Refer to Exhibit 21-7. On the cost-volume-profit graph, the area between point G, the origin of the graph, and the point at which Line B crosses the sales axis represents the:

Question

Exhibit 21-7 Use the cost-volume-profit graph below to answer the following question(s).

-Refer to Exhibit 21-7. On the cost-volume-profit graph, the area between point G, the origin of the graph, and the point at which Line B crosses the sales axis represents the:

Quizplus · Accepted Answer

The area between point G, the origin of the graph, and the point at which Line B crosses the sales axis represents the loss area. This is because this area represents the difference between total costs (which are constant throughout the graph) and total revenue, which is lower than total costs in this area, resulting in a loss.

Exhibit 21-7 Use the Cost-Volume-Profit Graph Below to Answer the Following