The intersection point of the total cost and revenue lines in breakeven analysis represents the Breakeven point.

Here's why:

1. The total cost line represents all the costs associated with producing a certain number of units, including both fixed and variable costs.

2. The total revenue line represents the total income from selling a certain number of units.

3. When these two lines intersect, it means that the total cost equals the total revenue. This is the point at which the company is not making a profit, but is also not incurring a loss. This is known as the breakeven point.

4. Beyond this point, if the company sells more units, it will start to make a profit. If it sells fewer units, it will incur a loss.

5. Therefore, the intersection point does not represent maximum profit, fixed cost, or variable cost. It represents the breakeven point.

Question

The intersection point of the total cost and revenue lines in breakeven analysis represents the Breakeven point.

Here's why:

1. The total cost line represents all the costs associated with producing a certain number of units, including both fixed and variable costs.

2. The total revenue line represents the total income from selling a certain number of units.

3. When these two lines intersect, it means that the total cost equals the total revenue. This is the point at which the company is not making a profit, but is also not incurring a loss. This is known as the breakeven point.

4. Beyond this point, if the company sells more units, it will start to make a profit. If it sells fewer units, it will incur a loss.

5. Therefore, the intersection point does not represent maximum profit, fixed cost, or variable cost. It represents the breakeven point.

Knowee AI · Accepted Answer

The intersection point of the total cost and revenue lines in breakeven analysis represents the Breakeven point.

Here's why:

1. The total cost line represents all the costs associated with producing a certain number of units, including both fixed and variable costs.

2. The total revenue line represents the total income from selling a certain number of units.

3. When these two lines intersect, it means that the total cost equals the total revenue. This is the point at which the company is not making a profit, but is also not incurring a loss. This is known as the breakeven point.

4. Beyond this point, if the company sells more units, it will start to make a profit. If it sells fewer units, it will incur a loss.

5. Therefore, the intersection point does not represent maximum profit, fixed cost, or variable cost. It represents the breakeven point.

The intersection point of the total cost and revenue lines represent in breakeven analysis shows Maximum profit Breakeven point Fixed cost Variable cost

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The intersection point of the total cost and revenue lines represent in breakeven analysis shows

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