SXF Corporation sells its single product for $14 per unit, and its variable cost per unit is $4. Total fixed costs are $800. Its CVP graph is as follows: Area C is best described as:

Question

Quizplus · Accepted Answer

Area C in the CVP graph represents the estimated profit at the actual volume of sales. This means that the revenue generated from sales at the actual level is sufficient to cover both the variable cost and fixed cost, resulting in a profit.

SXF Corporation Sells Its Single Product for $14 Per Unit