On a CVP graph for a profitable company, the line representing total expenses is steeper than the line representing total revenue.

Name: On a CVP graph for a profitable company, the line representing total expenses is steeper than the line representing total revenue.
Brand: Quizplus
Rating: 5.0 (39 reviews)

Question

Quizplus · Accepted Answer

If a company is profitable, its total revenue line should be steeper than its total expenses line. This is because the higher the level of production/sales, the higher the revenue, whereas total expenses may not increase at the same rate.

On a CVP Graph for a Profitable Company, the Line