Consider the following cost-volume-profit graph: What is the approximate amount of fixed costs in this organization?

A)$0
B)$25,000
C)$60,000
D)$30,000

Question

Consider the following cost-volume-profit graph: What is the approximate amount of fixed costs in this organization?

A)$0 
B)$25,000 
C)$60,000 
D)$30,000

Quizplus · Accepted Answer

In the given cost-volume-profit graph, fixed costs are represented by the horizontal line starting from the origin (zero units) and running parallel to the X-axis. We can estimate the approximate amount of fixed costs by identifying the point where this horizontal line intersects with the Y-axis (sales revenue axis). 
In this case, the intersection point is approximately at $30,000. Therefore, the best choice is D, $30,000 as the approximate amount of fixed costs in this organization.

Consider the Following Cost-Volume-Profit Graph: What Is the Approximate Amount