Explain the meaning of the operating loss and operating income areas on a cost-volume-profit (CVP) graph.
What will be an ideal response?
The operating loss area appears to the left of the breakeven point. This area is where total costs
exceed sales revenue, which leads to an operating loss. The operating income area appears to the right
of the breakeven point. In this area, the business earns a profit because sales revenue exceeds total
costs.
You might also like to view...
The intentional preparation of misleading financial statements, known as fraudulent financial reporting, can result from all of the following except
a. the misapplication of accounting principles. b. the manipulation of inventory records. c. fictitious sales or orders. d. recording a revenue that has been earned but not yet received.
Traxx is a newly emerging shoe manufacturing company. After extensive market research, Traxx divides its market into professional athletes, "hobbyists" or amateur players, and people who wear shoes as part of their casual attire. Each category has its own needs, traits, and marketing goals. In this scenario, Traxx has engaged in market ________.
A) development B) positioning C) diversification D) segmentation E) penetration
Which of the following is true of a contract, the object of which has become unlawful after the creation of the contract?
A) The contract is still legal as the object was legal at the time of creating that contract. B) The contract is illegal even if the parties don't complete the contractual agreement. C) The parties of the contract will be discharged from that contract. D) Both parties are still obligated to complete their contractual agreements.
When customer service performance measures are collected as random samples, how should the performance measures be evaluated?
a. The minimum value should be selected b. The maximum value should be selected c. They should be averaged d. Customer service performance measures should not be collected as random samples