On a CVP Graph,in the Area Where the Revenue Line

question 66

Multiple Choice

On a CVP graph,in the area where the revenue line appears below the total cost line,the vertical distance separating the two lines represents what?

• A) Variable costs
• B) Net profit
• C) Contribution margin
• D) Loss

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Definitions:

Market Testing

The process of evaluating the viability of a new product or service through trials in specified market areas.

Business Analysis

The practice of identifying business needs and determining solutions to business problems, often involving assessment of processes and systems.

Environmental Scanning

The process of collecting, scrutinizing, and utilizing information about events, trends, and relationships in an organization's external environment.

New-product Ideas

Concepts or proposals for new goods or services that a company can potentially develop and offer to the market.