After break-even on a CVP graph,the difference between sales dollars and total costs is the representation of:

Question

Quizplus · Accepted Answer

After break-even, any additional sales dollars will contribute to operating income. Therefore, the difference between sales dollars and total costs represents operating income. Option A is incorrect because operating loss is incurred when total costs exceed sales revenue. Options C and D are incorrect because the slopes of variable and fixed costs are not relevant in determining the operating income after break-even.

After Break-Even on a CVP Graph,the Difference Between Sales Dollars