In a Cost-Volume-Profit Graph, the Slope of the Total Cost

question 57

Multiple Choice

In a cost-volume-profit graph, the slope of the total cost line represents

• A)the selling price per unit.
• B)the contribution margin per unit.
• C)the variable cost per unit.
• D)total contribution margin.

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Definitions:

Gasoline

A flammable liquid derived from petroleum, used mainly as fuel in most internal combustion engines.

Perfectly Inelastic

A situation where the quantity demanded or supplied of a good is unaffected by changes in its price.

Upward-Sloping

A term often used in economics to describe a graph line that represents an increase in one variable as another variable increases, typically applied to supply curves.

Demand Curve

A graphical representation showing the relationship between the price of a good or service and the quantity demanded for a given period.