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Which of the Following Statements About Break-Even Graphs Is False

Question 71

Multiple Choice

Which of the following statements about break-even graphs is false?


A) The x-axis represents volume in units and the y-axis represents dollars earned or spent by the company.
B) At each volume level, the distance between the fixed cost and the total cost lines represents total variable cost.
C) Total revenue is plotted from zero, using a slope that represents the selling price per unit.
D) The break-even point is at the intersection of the revenue and fixed cost lines.
E) Beyond the BEP, profit is represented as the distance between the total revenue and total cost lines for any number of units.

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