What relationship is visually portrayed by a profit-volume graph?
A)total sales and total cost
B)profits and units sold
C)fixed costs and variable costs
D)total sales and units sold

Question

Quizplus · Accepted Answer

A profit-volume graph shows the relationship between profits (vertical axis) and the number of units sold (horizontal axis). It helps in determining the breakeven point, the minimum number of units that must be sold to cover all costs, and the profitability at different levels of sales. Therefore, option B (profits and units sold) is the correct answer. Option A (total sales and total cost) and D (total sales and units sold) are not accurate since they do not show the profitability or margins. Option C (fixed costs and variable costs) is also not the correct answer since it does not show the revenue or sales.

What Relationship Is Visually Portrayed by a Profit-Volume Graph