Echo Ltd sells its single product for $14 per unit, and its variable cost per unit is $4. Total fixed costs are $800. Its CVP graph is as follows: Area C is best described as:
A) fixed cost.
B) margin of safety.
C) estimated profit at actual volume.
D) breakeven point.

Question

Echo Ltd sells its single product for $14 per unit, and its variable cost per unit is $4. Total fixed costs are $800. Its CVP graph is as follows:  Area C is best described as:
A) fixed cost. 
B) margin of safety. 
C) estimated profit at actual volume. 
D) breakeven point.

Quizplus · Accepted Answer

The Answer of Echo Ltd sells its single product for $14 per unit, and its variable cost per unit is $4. Total fixed costs are $800. Its CVP graph is as follows:  Area C is best described as:
A) fixed cost. 
B) margin of safety. 
C) estimated profit at actual volume. 
D) breakeven point.

Echo Ltd Sells Its Single Product for $14 Per Unit