The point where the sales line and the total costs line intersect on the cost-volume-profit chart represents the

Question

BlackTom AI · Accepted Answer

The intersection of the sales (revenue) line and the total cost line is the break-even point because at that point total revenue equals total cost, so profit is zero.

1. Relevant knowledge points and concepts
- Cost-Volume-Profit (CVP) chart: plots sales revenue and total costs against sales volume (units).
- Sales (revenue) line: revenue = price per unit × quantity.
- Total cost line: total cost = fixed costs + (variable cost per unit × quantity).
- Break-even point: the quantity (and corresponding revenue) where total revenue equals total cost, producing zero operating profit or loss.

2. Step-by-step reasoning
- Let p = selling price per unit, v = variable cost per unit, F = total fixed costs, and Q = quantity sold.
- Revenue = p × Q. Total cost = F + v × Q.
- At the intersection, revenue = total cost, so pQ = F + vQ.

3. Algebraic calculation (intermediate steps)
- pQ = F + vQ
- Subtract vQ from both sides: pQ − vQ = F
- Factor Q: (p − v)Q = F
- Solve for break-even quantity: Q = F / (p − v)
This gives the break-even units; the break-even revenue is p × Q.

4. Why the correct answer is correct
- The intersection point satisfies revenue = total cost, meaning operating profit = revenue − total cost = 0. That is precisely the definition of the break-even point on a CVP chart.

5. Why other options are incorrect
- Total fixed costs: represented by a horizontal line on a CVP chart (constant regardless of volume), not the intersection of sales and total cost lines.
- Maximum possible operating loss: occurs at extremes (e.g., zero sales) and equals −F in simple CVP terms; it is not where revenue equals total cost.
- Maximum possible operating profit: occurs as volume and revenue grow much larger than costs; it is not the point where revenue equals cost.

Conclusion: Therefore, the intersection of the sales and total cost lines on the CVP chart is the break-even point, which matches the provided answer "break-even point."

The point where the sales line and the total costs line intersect on the cost-volume-profit chart represents the 单项选择题

类似问题

EA 7 - If they purchase the machine, the number of units needed to breakeven will

Break-even for a multiple product firm ________.

When sales price decreases and all other variables are held constant, the break-even point will ________.

Barb’s Best Pies sells a meat pie for $5.00. Variable costs are $3.00 per unit and fixed costs for the period are $4,000. What is the profit (loss) based on the sales volume at 1,000 pies?

Breakeven point is best defined as total revenue equal to

If calculations show that the break-even point is too high for the period, which of these is not a possible course of action?

Device Nation Pty's fixed costs are $200 000 and variable costs are 60% of the selling price. What is Device Nation Pty's break-even point in sales dollars?

A firm is considering a new project with estimated depreciation of $1,000, fixed costs of $3,600, and total sales of $8,146 at the accounting break-even level. The variable costs per unit are estimated at $5.61. What is the accounting break-even level of production?

更多留学生实用工具

智能学习助手

风格化写作助手

论文查重助手

文献引用助手

课堂转译助手

课堂笔记助手

Quiz搜索助手

学校历年真题

智能刷题助手

智能匹配练习

希望你的学习变得更简单