On a cost-volume-profit graph,the net profit area is found ________.
A) at the break-even point
B) to the right of the break-even point
C) to the left of the break-even point
D) to the right of the intersection of the y-axis and x-axis

Question

Quizplus · Accepted Answer

The net profit area is found to the right of the break-even point on a cost-volume-profit graph. This area represents the region where total revenue exceeds total cost, resulting in net profit. To the left of the break-even point, the total cost exceeds total revenue, leading to a net loss. The break-even point is where total revenue equals total cost, so it is not considered a net profit area. The intersection of the y-axis and x-axis represents zero revenue and zero cost, respectively, and is not relevant to the calculation of net profit.

On a Cost-Volume-Profit Graph,the Net Profit Area Is Found ________