In the graph below, the area between the lines AC and OB to the right of point E represents ________.

Question

Quizplus · Accepted Answer

The area between the lines AC and OB to the right of point E represents operating income. This is because it represents the profit made by the company when revenue is greater than the total costs (fixed and variable). The breakeven point would be represented by the point where the lines AC and OB intersect, and the area to the left of that point would represent operating loss. Therefore, the correct answer is D, operating income.

In the Graph Below, the Area Between the Lines AC