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

question 78

Multiple Choice

The following diagram is a cost-volume-profit graph for a manufacturing company:

-Refer to the figure.Which of the following statements best describes the labelled item on the diagram?

• A)Area CDE represents the area of net loss.
• B)Line AC graphs the total fixed costs.
• C)Point D is where contribution margin increases.
• D)Line AC graphs the total costs.

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