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

question 2

Multiple Choice

The following diagram is a cost-volume-profit graph for a manufacturing company: Select the answer that best describes the labeled item on the diagram.

• A)Area CDE represents the area of net loss.
• B)Line AC graphs total fixed costs.
• C)Point D represents the point at which the contribution margin per unit increases.
• D)Line AC graphs total costs.

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Definitions:

Symmetrical

Having properties of symmetry, where one side of an object or design mirrors the other side in size, shape, and position.

Conserve Quantity

The understanding that quantity does not change with physical alteration of objects, part of cognitive development in children.

Differently Shaped

Describes objects, elements, or figures that do not share the same form or outline.

Pennies

Small denominational coins used in various currencies, often representing the smallest monetary unit.