In a CVP graph,the area between the total cost line and the total revenue line represents total
A)contribution margin.
B)variable costs.
C)fixed costs.
D)profit.

Question

Quizplus · Accepted Answer

The area between the total cost line and the total revenue line represents profit. This is because it shows the difference between the total revenue earned and the total costs incurred. If the revenue line is above the cost line, then there is a profit, and the area between the two lines represents that profit.

In a CVP Graph,the Area Between the Total Cost Line