The following diagram is a cost-volume-profit graph for a manufacturing company:
-The difference between line AB and line AC (area BAC) is the

Name: The following diagram is a cost-volume-profit graph for a manufacturing company: -The difference between line AB and line AC (area BAC) is the
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Question

The following diagram is a cost-volume-profit graph for a manufacturing company:  
-The difference between line AB and line AC (area BAC) is the

Quizplus · Accepted Answer

Area BAC represents the total fixed cost as it is the difference between the total sales revenue at point B and the total variable cost at point C. Therefore, the correct choice is D) total fixed cost.

The Following Diagram Is a Cost-Volume-Profit Graph for a Manufacturing