MBA 641 Week 2-1 - Copy 11 .docx - Question M16-12. All of...

Question M16-12. All of this information can be found in pages 16-12 through 16-15
in our textbook.
A. Identify each of the following:
1. Line OF – This line is the total variable cost line. It is how the production overall costs,
including materials and labor.
2. Line OR – This line is the total revenue. You can get the overall revenue by if you take
the price times the quantity. If you increase the costs per unit, the revenue goes up.
3. Line CC – The CC line is the total costs. It includes the variable costs and some of the
fixed costs.
4. The difference between lines OF and OV at any given number of unit sales. – This
space is the variable costs in the production. It will go up with each additional unit.
5. The difference between lines CC and OF at any given number of unit sales. – This
difference is showing the fixed costs in the production. It is the difference between
total costs and variable costs.
6. The difference between lines CC and OV at any given number of unit sales. – This