Question

What does the region between the lines to the left of the​ break-even point​ represent? A. The number of riding mowers that must be manufactured to break even. B. The loss when x riding mowers are manufactured. C. The profit when x riding mowers are manufactured. D. The number of riding mowers manufactured. What does the region between the lines to the right of the​ break-even point​ represent? A. The number of riding mowers manufactured. B. The loss when x riding mowers are manufactured. C. The number of riding mowers that must be manufactured to break even. D. The profit when x riding mowers are manufactured.

Answer 1

Answer:

B. The loss when x riding mowers are manufactured.

Explanation:

The Left shade of the break-even point​ on the Cost Volume Profit (CVP) Chart, shows the Loss incurred. This is because the Total Revenue Line is below the Total Cost Line(Fixed Costs + Variable Cost). So any number of units manufactured in this area provides a loss.