On a CVP graph,the vertical distance between the total expense line and the total fixed cost line equals the operating income or operating loss.

Question

Quizplus · Accepted Answer

The vertical distance between the total expense line and the total fixed cost line on a CVP graph represents the variable costs, not the operating income or loss. Operating income or loss is determined by the difference between total revenue and total expenses.

On a CVP Graph,the Vertical Distance Between the Total Expense