On a breakeven chart, which axis represents sales volume and which represents money?

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Multiple Choice

On a breakeven chart, which axis represents sales volume and which represents money?

Explanation:
In a breakeven chart the key idea is to show how money changes with different levels of units sold. The horizontal axis represents sales volume (quantity of units), because you want to see how revenue and costs vary as you sell more or fewer units. The vertical axis represents money (currency), displaying the actual amounts of revenue, fixed costs, and total costs. The revenue line climbs with volume, since revenue depends on how many units are sold, while the total cost line starts at the fixed cost and rises with volume due to variable costs. The breakeven point is where these two lines intersect, meaning revenue equals total costs. So the standard arrangement is horizontal = sales volume and vertical = money.

In a breakeven chart the key idea is to show how money changes with different levels of units sold. The horizontal axis represents sales volume (quantity of units), because you want to see how revenue and costs vary as you sell more or fewer units. The vertical axis represents money (currency), displaying the actual amounts of revenue, fixed costs, and total costs. The revenue line climbs with volume, since revenue depends on how many units are sold, while the total cost line starts at the fixed cost and rises with volume due to variable costs. The breakeven point is where these two lines intersect, meaning revenue equals total costs. So the standard arrangement is horizontal = sales volume and vertical = money.

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