On a CVP graph, in the area where the revenue line appears below the total cost line, the vertical distance separating the two lines represents what?

Question

Quizplus · Accepted Answer

The vertical distance between the revenue and total cost lines on a CVP graph represents the operating loss, which occurs when the total cost of producing and selling a product or service exceeds the revenue earned from those sales. This can happen when fixed costs are high or sales volume is low.

On a CVP Graph, in the Area Where the Revenue