On a CVP graph, the intersection of the sales line and the total cost line is known as the:
A) total cost point.
B) breakeven point.
C) unit contribution margin.
D) margin of safety point.

Question

Quizplus · Accepted Answer

The intersection of the sales line and the total cost line on a Cost-Volume-Profit (CVP) graph represents the breakeven point. This is the point at which total revenues equal total costs, resulting in zero profit.

On a CVP Graph, the Intersection of the Sales Line