In the graph below,the area between the lines AC and OB after point 'E' represents ________.
A) fixed costs
B) breakeven point
C) operating loss
D) operating income

Question

In the graph below,the area between the lines AC and OB after point 'E' represents ________. 
A) fixed costs 
B) breakeven point 
C) operating loss 
D) operating income

Quizplus · Accepted Answer

The area between the lines AC and OB after point 'E' represents the operating income. It is the area between the total revenue line (AC) and the total cost line (OB) above the breakeven point (E). Therefore, the correct choice is D, operating income.

In the Graph Below,the Area Between the Lines AC and OB