ECONOMICS

Detailed explanation-1: -On a typical break-even graph, units sold are shown on the vertical axis and both pesos of sales and pesos of costs are shown on horizontal axis. The margin of safety can be expressed in units of product, in pesos, or as a percentage of sales.

Detailed explanation-2: -A breakeven chart is a chart that shows the sales volume level at which total costs equal sales. Losses will be incurred below this point, and profits will be earned above this point.

Detailed explanation-3: -Total profit at the break-even point is zero.

Detailed explanation-4: -On a CVP graph, the vertical axis, which is in dollar amounts, represents the total costs of production that increase with an increase in units produced. The Horizontal axis, on the other hand, denotes the total units produced at different levels.

Detailed explanation-5: -Answer and Explanation: A) the point where total profit equals total fixed expenses. This is incorrect because, at the break-even point, the total contribution margin and the total fixed costs are equal.