On a cost-volume-profit graph, the revenue line will be shown above the total expense line for any activity level above the break-even point.

Question

Quizplus · Accepted Answer

This is true because above the break-even point, the total revenue generated by selling products or services will be higher than the total expenses incurred to produce and sell those products or services. This means that the company is earning a profit on every unit sold above the break-even point, which is reflected in the revenue line being higher than the total expense line.

On a Cost-Volume-Profit Graph, the Revenue Line Will Be Shown