-Using the Above Figure,the Origin Is at Which Point

question 63

Multiple Choice

-Using the above figure,the origin is at which point?

• A) Point a
• B) Point b
• C) Point c
• D) None of the points in the figure is the origin.

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Definitions:

Contribution Margin

The difference between sales revenue and variable costs, indicating how much contributes to covering fixed costs and generating profit.

Fixed Costs

Expenses that do not change in proportion to the activity of a business.

Contribution Margin

The amount by which sales revenue exceeds variable costs; it contributes towards covering fixed costs and generating profit.

Variable Costs

Charges that adjust in relation to the quantity of goods or services manufactured by a corporation.