On a cost-volume-profit graph, when the Total Cost line is higher than the Total Revenue line, the difference represents Select one: O A. a positive return on the investment O B. a net loss O C. net income O D. not enough information is presented
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- Which method results in a more realistic amount for income because it matches the most current costs against revenue? a.FIFO b.Weighted average cost c.Specific identification d.LIFOIn the cost-volume-profit graph,a. the break-even point is found where the total revenue curve crosses the x-axis.b. the area of profit is to the left of the break-even point.c. the area of loss cannot be determined.d. both the total revenue curve and the total cost curve appear.e. neither the total revenue curve nor the total cost curve appear.Profit volume ratio is used for the calculation of: Select one: O a. Profit at given sales O b. Breakeven point O c. Profit when margin of safety is given O d. For all options provided
- On the Cost-Volume-Profit chart graph, the area below the Total Costs Line and above the Total Revenues Line represents profit. TRUE FALSEIn the cost-volume- profit graph (above), what is represented by the point marked "B"? Question 2 options: Breakeven point Fixed expenses Operating income area Operating loss areaA Cost-Volume-Profit graph contains an "Area of Loss" and an "Area ofProfitability". Which of the following best explains the difference between thetwo points on the graph? A. The area of loss represents the difference between Sales and Variable Cost.B. The area of loss begins with the concept that fixed costs have to be recovered priorto sales contributing to profit.C. The area of profit represents the difference between Sales and Variable Cost.D. The area of profit begins with the concept that no company would have any level ofsales below the break-even point.
- 46. Revenue, cost, and profit. The price-demand equation and the cost function for the production of HDTVS are given, respectively, by x 9,000 - 30p and C(x) = 150,000 + 30x where x is the number of HDTVS that can be sold at a price of $p per TV and C(x) is the total cost (in dollars) of produc- ing x TVs.In a profit diagram, the safety margin can either be expressed in kronor or some form of volume. choose an alternative True FalseThe difference between sales and marginal cost is______________ a. Fixed Cost b. Profit c. Sales price d. Contribution
- Which of the following statement is correct for relevant costs? a.It is avoidable, future and measured by cash b.It is avoidable, future and measured by profit c.It is unavoidable, future and measured by cash d.It is unavoidable, future and measured by profitWhich of the following does not represent a cost -volume -profit analysis equation a. Sales = totale expenses + profit b. Sales + fixed expenses profit = contribi argin + sales c. Profit = contrib contribution margin - fixed expenses d. Contribution margin- fixed expenses - profit 0 e. Sales - fixed expenses - variable expenses ses = 0In the cost-volume- profit graph (above), what is represented by the point marked "D"? Question 3 options: Operating loss area Operating income area Breakeven point Fixed expenses
