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

question 27

Multiple Choice

The following diagram is a cost-volume-profit graph for a manufacturing company: The formula to determine the Y-axis value (£) at point D on the graph is as follows:

• A) Fixed costs + (Variable costs per unit × Number of units)
• B) ΣXY - bΣX
• C) Fixed costs/Unit contribution margin
• D) Fixed costs/Contribution margin ratio

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