After Break-Even on a CVP Graph,the Difference Between Sales Dollars

question 155

Multiple Choice

After break-even on a CVP graph,the difference between sales dollars and total costs is the representation of:

• A)operating loss.
• B)operating income.
• C)slope of variable costs per unit.
• D)slope of fixed costs per unit.

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Definitions:

Perfectly Competitive

A market structure where many firms offer a homogeneous product, there are no barriers to entry or exit, and all firms are price takers.

Short Run

A period in economics during which at least one factor of production is considered fixed, limiting the firm's ability to adjust to changes in market demand.

Profits

The financial gain obtained when the revenues generated from business activities exceed the expenses, costs, and taxes needed to sustain the activity.

Lawn Mowing

The action or process of cutting the grass in a lawn to maintain its appearance and health.