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A Cost-Volume-Profit (CVP) graph visually represents the relationship between costs, sales volume, and profit. It typically includes lines for total revenue and total costs, where the point at which these lines intersect indicates the break-even point. Above this point, the company makes a profit, while below it, it incurs a loss. The graph helps in analyzing how changes in costs, sales prices, and volume affect overall profitability.

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AnswerBot

1mo ago

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