1) The horizonal axis show the number of products which could be sold. a) cost and revenue b) number sold c) variable costs d) loss e) margin of safety 2) The vertical axis shows the amount as spent as costs and received as revenue. a) profit b) variable cost c) costs and revenue d) total cost e) sales revenue 3) This line is horizontal because the fixed costs never change no matter how many products are sold. a) margin of safety b) sales c) sales revenue d) total costs e) fixed costs 4) This line shows the fixed costs plus the variable costs. a) total cost b) profit c) sales d) number sold e) sales revenue 5) The difference between the fixed costs line and total costs line is the ???? The gap widens as the level of sales increase. a) number sold b) fixed costs c) variable costs d) margin of safety e) costs and revenue 6) This is the point where the sales revenue line crosses the total cost line and shows the number of sales needed for the business to ....... a) make a profit b) increase sales c) change the cost of the products d) make a loss e) break-even 7) To the right of the break-even line sales revenue is greater than total costs, so the business is making a ...... The distance between the two lines shows the amount of ..... for each level of sales. a) profit b) loss c) sales d) variable cost e) number sold 8) This line starts at the zero point since no sales means that no income is being earned. a) sales b) sales revenue c) profit d) loss e) number sold 9) This is the amount by which sales would have to fall before the break-even point is reached. a) margin of safety b) number sold c) break-even point d) fixed costs e) costs and revenue 10) To the left of the break-even line sales revenue is less than expenditure and the business is making a ,,,,,, The distance between the lines shows the amount of ,,,, at each level of sales. a) profit b) loss c) total costs d) fixed costs e) number sold 11) This shows that sales are higher than the number required to break-even. a) margin of safety b) sales revenue c) number sold d) loss e) sales

LO B Features of a break-even chart 2

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