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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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