On a CVP Graph, the Intersection of the Sales Revenue

question 76

Multiple Choice

On a CVP graph, the intersection of the sales revenue line and the variable expense line is considered to be

• A) the margin of safety point.
• B) the break-even point.
• C) the total cost point.
• D) the intersection of the axis.

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Definitions:

Raise Price

The act of increasing the cost at which a good or service is sold, which can affect demand, revenue, and profit margins.

Lose Sales

The phenomenon of experiencing a reduction in the number of units sold or in total revenue.

Competitive Price-searcher

A market condition where businesses actively seek to determine the optimal pricing of their goods or services relative to their competitors to gain market share.

Entry Barriers

Obstacles that make it difficult for new competitors to enter a market.