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Consider the following cost-volume profit graph: (A) $150,000 120,000 90,000 (B) 60,000 30,000 (9) 0 The line designated by t
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Answer #1

The line designated by the letter (B) represent:-

Total cost.

Explanation :-  The (B) letter line represent the total costs of production. This includes fixed and variable costs. As production increases, so does the total production costs.

The (C) letter line represents the total sales of the company. This line assume that as more units are produced more unit are sold. The point where the total costs line crosses the total sales line represent the break Even point.

The (B) line start from above the (C) lone because it includes fixed cost even when sale is zero fixed cost occurred.

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