Show the profit volume charts, Cost Accounting

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Q. Show the Profit volume charts?

A variation of a break-even chart, representing graphically the relationship between profit &losses at different levels of sales volume achieved.

537_Show the Profit volume charts.png

Profit volume chart is a summarisation of the break even chart, whereby line represents total profit (sales less all costs). When the line rises above horizontal axis it means that production is beginning to yield a profit, before this point it means that production is yielding a loss. Break-even point where no loss or profit is being made is where this profit line intersected horizontal axis


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