In a cost-volume-profit graph,
A) the total revenue line crosses the horizontal axis at the break-even point.
B) beyond the break-even sales volume, profits are maximized at the sales volume where total revenues equal total costs.
C) an increase in unit variable costs would decrease the slope of the total cost line.
D) an increase in the unit selling price would shift the break-even point in units to the left.

Question

Quizplus · Accepted Answer

An increase in the unit selling price increases total revenue per unit, which reduces the number of units needed to cover total costs, thus shifting the break-even point to the left.

In a Cost-Volume-Profit Graph