Question

A company spends a considerable amount on publicity to promote sales. This expenditure in a break-even chart is shown below the:

• A. Fixed cost line
• B. Variable cost line
• C. Total cost line
• D. Sales revenue line

Hint:

Classify costs correctly to create accurate break-even charts.

Answer 1

The Correct Option is B

Publicity costs are variable, fluctuating with sales activity, and appear below the variable cost line on a break-even chart.