ACCT 231: Ch. 5 HW
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Break-even point is the level of sales at which ________.
total revenue equals total costs; zero
Once the break-even point has been reached, NOI will increase by the amount of _________ for each additional unit sold.
unit CM
What is represented on the X axis of a CVP graph?
unit volume
What is usually plotted as a horizontal line on the CVP graph?
fixed expenses
With regards to interpretation, what are the important areas that appear on a CVP graph?
-break-even point -loss area -profit area
