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 AC and OB after point E represents operating income. This is because it is the area between the revenue (OB) and the total cost curve (AC) beyond the breakeven point. This indicates that the company is generating a profit beyond the breakeven point.

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