On a cost-volume-profit graph,the vertical distance between the Revenue line and the Total Cost line represents ________ or ________.
A) mixed cost; step cost
B) variable cost; fixed cost
C) net profit; net loss
D) step cost; fixed cost

Question

Quizplus · Accepted Answer

The vertical distance between the Revenue line and the Total Cost line on a cost-volume-profit graph represents net profit or net loss, depending on whether the Revenue line is above or below the Total Cost line.

On a Cost-Volume-Profit Graph,the Vertical Distance Between the Revenue Line