Match each item with the correct statement below.
-measured in units sold
A)horizontal-axis of CVP graph
B)vertical-axis of CVP graph
C)slope of revenue line
D)slope of cost line
E)point where the total revenue line and the total cost line intersect

Question

Quizplus · Accepted Answer

The horizontal axis of a CVP graph typically represents units sold or quantity of output.

Answer: B
 The vertical axis of a CVP graph typically represents the total dollars (or whatever currency is used) spent or earned.

Answer: C
 The slope of the revenue line represents the unit selling price, which is calculated as the change in revenue divided by the change in quantity sold.

Answer: D
 The slope of the cost line represents the unit variable cost, which is calculated as the change in cost divided by the change in quantity produced.

Answer: E
 The point where the total revenue line and the total cost line intersect represents the break-even point, where the company is neither making a profit nor incurring a loss.

Match Each Item with the Correct Statement Below