In a Cost-Volume-Profit Graph,what Does the Slope of the Total

question 12

Multiple Choice

In a cost-volume-profit graph,what does the slope of the total revenue line represent?

• A)the selling price
• B)the contribution margin
• C)the variable cost per unit
• D)the fixed costs

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Definitions:

Slope

The measure of the steepness or incline of a line, indicating the rate at which y values change with respect to x values.

Budget Line

A chart that displays every possible mix of two commodities that could be bought, given a particular financial plan, with unchanging prices.

Price Ratio

The ratio expressing the relative prices of two goods or services, indicating how much of one is needed to trade for one unit of the other.

Marginal Rate

Refers to the rate at which one quantity changes with respect to a change in another quantity, commonly used in the context of taxes and interest rates.