Accounting Multiple Choice Question – 17 July 2021

The diagram shows a break-even chart. 

What does line XY represent?

Select ONE answer:

1. the break-even point revenue 
2. the margin of safety in terms of revenue
3. the profit at break-even point
4. the total contribution at break-even point  

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 2

1. Not correct
2. Correct
3. Not correct
4. Not correct

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