On the CVP graph, the intersection between the total costs line and the Y axis represents: O a The loss area Ob The profit area Oc The margin of safety Od The total fixed cost Oe None of the given answers XYZ company expects the following in the next month: sales volume 50,000 units, contribution margin ratio 60%, the selling price $2per unit, and the total fixed costs $10,000. What will be the degree of operating leverage in the next month? O a 6 Ob 12 Oc 3 Od None of the choices given Oe 25

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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On the CVP graph, the intersection between the total costs line and the Y axis represents:
O a The loss area
Ob. The profit area
Oc The margin of safety
Od. The total fixed cost
Oe None of the given answers
XYZ company expects the following in the next month: sales volume 50,000 units, contribution margin
ratio 60%, the selling price $2per unit, and the total fixed costs $10,000. What will be the degree of
operating leverage in the next month?
O a 6
O b. 12
Oc 3
Od. None of the choices given
O e 25
on
Transcribed Image Text:On the CVP graph, the intersection between the total costs line and the Y axis represents: O a The loss area Ob. The profit area Oc The margin of safety Od. The total fixed cost Oe None of the given answers XYZ company expects the following in the next month: sales volume 50,000 units, contribution margin ratio 60%, the selling price $2per unit, and the total fixed costs $10,000. What will be the degree of operating leverage in the next month? O a 6 O b. 12 Oc 3 Od. None of the choices given O e 25 on
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