The vertical axes on a break-even chart and a profit-volume chart respectively are:

Question

Quizplus · Accepted Answer

The vertical axes on a break-even chart represent sales revenue and costs and on a profit-volume chart represents profit. Therefore, option C is the correct choice. Option A is incorrect because the break-even chart's vertical axis does not represent profit, but represents sales revenue and costs, and option B is incorrect because the profit-volume chart's vertical axis represents profit, not volume of output. Option D is also incorrect because the fixed costs are not represented on the vertical axis of either chart.

The Vertical Axes on a Break-Even Chart and a Profit-Volume