## On a cvp chart the horizontal line represents

Example of CVP Graph The following CVP graph represents Zephyr Corporation’s costs and production levels: The vertical axis denotes dollar amounts and the horizontal axis represents units of production. The thick green line at the \$10,000 level represents fixed costs. The horizontal line intersecting the vertical y-axis at the level of total cost on a CVP graph represents total fixed costs. Company A has a higher safety of margin while Company B has a lower safety of margin.

Definition: A cost volume profit chart, often abbreviated CVP chart, is a graphical representation of the cost-volume-profit analysis. In other words, it’s a graph that shows the relationship between the cost of units produced and the volume of units produced using fixed costs, total costs, and total sales. In the graph method of CVP analysis, the horizontal line above the x-axis represents the total cost line FALSE In profit-volume graph the point at which the profit-volume line and x-axis intersect is the breakeven point Below is the CVP graph of the example above: Explanation: The number of units is on the X-axis (horizontal) and the dollar amount is on the Y-axis (vertical). The red line represents the total fixed costs of \$100,000. The blue line represents revenue per unit sold. For example, selling 10,000 units would generate 10,000 x \$12 = \$120,000 in The vertical distance between the total revenue line and the total expense line on a CVP graph represents: a) the total gross margin b) only the total amount of profit c) the total amount of either profit or loss d) the total contribution margin CVP analysis takes its name from cost, volume and profit. The associated analysis plots two lines on a graph with a horizontal axis that shows the total number of units produced. The two lines represent the total revenue and the total cost for that number of units. In virtually every case, the revenue line will start out higher than the cost

## The horizontal axis represents sales (in units or sales value, A completed CVP graph will show that profit or loss at any level of sales is measured by: (a) A vertical line between the fixed cost line and the x axis. (b) A horizontal line between the revenue line and the y axis. (c)

Below is the CVP graph of the example above: Break even point analysis Chart. Explanation: The number of units is on the X-axis (horizontal) and the dollar amount is on the The yellow line represents total costs (fixed and variable costs ). Question: The Area Marked By The “e” (between Line C And Line I) On This CVP Graph (where The Vertical Axis Represents Dollars And The Horizontal Axis  24 May 2012 Also known as CVP analysis, or cost-volume-profit analysis. Lines aredrawn on the chart to represent costs and sales revenue. The furthest point on the horizontal axis will be monthly sales volume of 1,700 units. Draw the fixed cost line on your chart. For the above example, a horizontal line at \$40 represents the fixed costs, so draw a straight line from (0,40) to (200,40). CVP is a very powerful tool, and can be used to answer questions such as: Fixed costs are represented by a horizontal line with no slope. b. volume and costs are graphed, curvilinear costs appear as a curved line that starts at the graph.

### The vertical axis denotes dollar amounts and the horizontal axis represents units of production. The thick green line at the \$10,000 level represents fixed costs.

Below is the CVP graph of the example above: Explanation: The number of units is on the X-axis (horizontal) and the dollar amount is on the Y-axis (vertical). The red line represents the total fixed costs of \$100,000. The blue line represents revenue per unit sold. For example, selling 10,000 units would generate 10,000 x \$12 = \$120,000 in The vertical distance between the total revenue line and the total expense line on a CVP graph represents: a) the total gross margin b) only the total amount of profit c) the total amount of either profit or loss d) the total contribution margin CVP analysis takes its name from cost, volume and profit. The associated analysis plots two lines on a graph with a horizontal axis that shows the total number of units produced. The two lines represent the total revenue and the total cost for that number of units. In virtually every case, the revenue line will start out higher than the cost The horizontal sales line divides the chart into two parts. The lower part of the line is representing loss area and the area above the line represents the profit area. Step 4: On the vertical axis, the area below the sales line represents fixed costs and above that represents profit. Step 5: Below is the CVP graph of the example above: Explanation: The number of units is on the X-axis (horizontal) and the dollar amount is on the Y-axis (vertical). The red line represents the total fixed costs of \$100,000. The blue line represents revenue per unit sold. For example, selling 10,000 units would generate 10,000 x \$12 = \$120,000 in The profit volume chart is a summarisation of the break even chart, whereby the line represents total profit (sales less all costs). When the line rises above the horizontal axis it means that production is beginning to yield a profit, before this point it means that production is yielding a loss. 1. CVP Graph for A, Inc. Horizontal line represents volume (in ’000) and vertical line represents amount. The area between total revenue and fixed cost below fixed cost line shows loss area, whereas the area between total revenue and fixed cost above fixed cost line shows profit area.

### A basic breakeven chart records costs and revenues on the verticalaxis (y) and the level of activity on the horizontal axis (x). Lines aredrawn on the chart to represent costs and sales revenue. The breakevenpoint can be read off where the sales revenue line cuts the total costline.

The vertical axis denotes dollar amounts and the horizontal axis represents units of production. The thick green line at the \$10,000 level represents fixed costs. What is represented on the X axis of a cost-volume-profit (CVP) graph? What is usually plotted as a horizontal line on the CVP graph? First construct a chart with output (units) on the horizontal (x) axis, and costs and revenue on the vertical (y) axis. On to this, plot a horizontal fixed costs line (it is  Below is the CVP graph of the example above: Break even point analysis Chart. Explanation: The number of units is on the X-axis (horizontal) and the dollar amount is on the The yellow line represents total costs (fixed and variable costs ).

## Below is the CVP graph of the example above: Explanation: The number of units is on the X-axis (horizontal) and the dollar amount is on the Y-axis (vertical). The red line represents the total fixed costs of \$100,000. The blue line represents revenue per unit sold. For example, selling 10,000 units would generate 10,000 x \$12 = \$120,000 in

24 May 2012 Also known as CVP analysis, or cost-volume-profit analysis. Lines aredrawn on the chart to represent costs and sales revenue. The furthest point on the horizontal axis will be monthly sales volume of 1,700 units. Draw the fixed cost line on your chart. For the above example, a horizontal line at \$40 represents the fixed costs, so draw a straight line from (0,40) to (200,40).

The vertical axis denotes dollar amounts and the horizontal axis represents units of production. The thick green line at the \$10,000 level represents fixed costs. What is represented on the X axis of a cost-volume-profit (CVP) graph? What is usually plotted as a horizontal line on the CVP graph? First construct a chart with output (units) on the horizontal (x) axis, and costs and revenue on the vertical (y) axis. On to this, plot a horizontal fixed costs line (it is  Below is the CVP graph of the example above: Break even point analysis Chart. Explanation: The number of units is on the X-axis (horizontal) and the dollar amount is on the The yellow line represents total costs (fixed and variable costs ). Question: The Area Marked By The “e” (between Line C And Line I) On This CVP Graph (where The Vertical Axis Represents Dollars And The Horizontal Axis