On a profit-volume chart, the output where the graph line crosses the axis is the output where:

Question

Quizplus · Accepted Answer

The point where the profit-volume chart intersects with the x-axis represents the level of output at which the firm breaks even, meaning that there is zero profit or loss. This is because the revenue generated from selling a certain quantity of a product equals the total costs incurred in producing and selling that quantity. Therefore, the answer is D, as the point of zero profit (A) and the break-even point (B) are the same.

On a Profit-Volume Chart, the Output Where the Graph Line