On a CVP graph, the horizontal line intersecting the vertical y-axis represents

Question

Quizplus · Accepted Answer

The horizontal line intersecting the vertical y-axis on a CVP graph represents total fixed costs. This is because fixed costs do not change based on the level of production, and therefore remain constant at all levels. The vertical axis represents costs, and the horizontal axis represents the level of production or sales. The point where the total revenue line intersects with the total cost line represents the break-even point.

On a CVP Graph, the Horizontal Line Intersecting the Vertical