Question

the amount of income or loss at each level of sales can be derived from the...

the amount of income or loss at each level of sales can be derived from the total sales and total cost lines in a CVP graph

True or False

0 0
Add a comment Improve this question Transcribed image text
Answer #1

The amount of income or loss at each level of sales can be derived from the total sales and total cost lines in a CVP graph.

The given statement is true.

With the help of total sales and total cost lines, income or loss at each level of sales can be derived. The difference between sales and total cost lines indicates the amount of profit earned or loss suffered.

The sales range up to which total cost line lies above the total sales line, there is a loss. After break even level (the point at which total cost and total sales line intersect), the difference between total sales line and total cost line indicates profit.

Add a comment
Know the answer?
Add Answer to:
the amount of income or loss at each level of sales can be derived from the...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT