In a graphic depiction of accounting break-even analysis,the greater the slope of the total cost line,the higher the:
A) level of fixed costs.
B) level of total revenue.
C) number of units sold.
D) percentage of variable costs to sales.

Question

Quizplus · Accepted Answer

The slope of the total cost line in a break-even analysis graph is determined by the variable costs per unit. A steeper slope indicates a higher percentage of variable costs relative to sales.

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