In a Cost-Volume-Profit Graph

question 98

Multiple Choice

In a cost-volume-profit graph,

• A) the total revenue line crosses the horizontal axis at the break-even point.
• B) beyond the break-even sales volume, profits are maximized at the sales volume where total revenues equal total costs.
• C) an increase in unit variable costs would decrease the slope of the total cost line.
• D) an increase in the unit selling price would shift the break-even point in units to the left.

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