Use the information below to answer the following question(s).Bartwell Company sells several products.Information of average revenue and costs is as follows:

-If unit sales exceed the break-even point when using the graph method
A)there is a loss because the total cost line exceeds the total revenue line.
B)total sales exceed total costs.
C)there is a profit because the total cost line exceeds the total revenue line.
D)expenses are extremely high relative to revenues.
E)operating income is negative (an operating loss).

Question

Use the information below to answer the following question(s).Bartwell Company sells several products.Information of average revenue and costs is as follows:
 
-If unit sales exceed the break-even point when using the graph method
A)there is a loss because the total cost line exceeds the total revenue line. 
B)total sales exceed total costs. 
C)there is a profit because the total cost line exceeds the total revenue line. 
D)expenses are extremely high relative to revenues. 
E)operating income is negative (an operating loss).

Quizplus · Accepted Answer

If the unit sales exceed the break-even point when using the graph method, it means that the total sales revenue line is above the total cost line. Therefore, the company is making a profit. Option A, C, D, and E are incorrect as they suggest the opposite or do not make sense in this context.

Use the Information Below to Answer the Following Question(s)