Which of the following illustrates how the level of operating profit (πB) changes over different levels of output (that is, sales volume)?

Question

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The profit-volume graph illustrates how the level of operating profit changes over different levels of output or sales volume. It shows the relationship between revenue and cost and how they impact the company's profits. This graph helps management to determine the level of output that maximizes profit.

Which of the Following Illustrates How the Level of Operating