Angle of Incidence is
Angle between Sales and Fixed cost lines
Angle between Sales and Variable cost lines
Angle between Sales and Total cost lines
None of the above
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Answer:
ANGLE BETWEEN TOTAL SALES AND TOTAL COST LINE
Explanation:
This is an angle formed between the total sales line and total cost line at (above) the break-even point (refer break-even chart). It indicates the rate of profit earned by the business. A large angle of incidence indicates a high rate of profit while a narrow angle would show a relatively low rate of profit.
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