In Figure 13-10 above,which is a break-even chart that depicts a graphic presentation of a break-even analysis for a picture frame store,the tan/red-shaded area "EBCD" represents the firm's
A)fixed costs.
B)break-even point.
C)variable costs.
D)profit.
E)total revenue.

Question

Quizplus · Accepted Answer

The tan/red-shaded area "EBCD" represents the firm's fixed costs. Fixed costs are costs that do not change with the level of output. In this case, the fixed costs are the costs of rent, utilities, and insurance.

In Figure 13-10 Above,which Is a Break-Even Chart That Depicts