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

Question

Quizplus · Accepted Answer

After the break-even point on a CVP graph, any sales dollars in excess of total costs represent operating income. This means that the company is generating a profit. Conversely, any sales dollars below the break-even point will result in operating losses. The slope of variable and fixed costs per unit is calculated differently and is not relevant to this scenario.

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