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When interpreting a cvp graph which is not correct

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Reference no: EM132521388

Question 1: When interpreting a CVP graph which of the following is NOT correct?

Option A. When sales are below the breakeven intersection the company incurs a loss.

Option B. The breakeven point is where the total revenue line meets the fixed cost line.

Option C. The anticipated profit or loss at any given level of sales is measured by the vertical distance between the total revenue line and the total expense line.

Option D. The total revenue line starts at the origin.

Reference no: EM132521388

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