Question: You are comparing a firm's CVP graph for two consecutive years. In Year A , the firm's sales volume and total revenue resulted in a
You are comparing a firm's CVP graph for two consecutive years. In Year A the firm's sales volume and total revenue resulted in a graph point that fell above the fixedcost line, to the right of the sales line, and to the left of the totalcost line. In Year B the firm's sales volume and total revenue resulted in a point that fell above the fixedcost line and at the intersection of the totalcost and sales lines. What do these graph results indicate?
The firm failed to breakeven in either Year A or Year B
The firm was more profitable in Year A than in Year B
The firm's financial performance was better in Year B than in Year A
The firm turned a profit in both Year A and Year B
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