On a profit-volume graph,what does the intersection of the profit line with the vertical axis represent?

Question

Quizplus · Accepted Answer

The intersection of the profit line with the vertical axis on a profit-volume graph represents a loss equal to fixed costs, because at zero volume (the point where the line intersects the vertical axis), there are no sales to cover any of the fixed costs, resulting in a loss equal to the total fixed costs.

On a Profit-Volume Graph,what Does the Intersection of the Profit