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If fixed costs are increased, the gradient of the line plotted on a profit/volume (PV) graph will be:
Suggested Answer: C
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40 comments · newest first
CA
Carey
11 months ago
Totally agree, it’s all about variable costs for the slope!
MU
Muriel
11 months ago
Really? I thought it would change somehow.
RE
Rene
11 months ago
Definitely unchanged! Fixed costs don’t affect the slope.
AS
Ashley
12 months ago
I think it gets steeper with higher fixed costs.
JE
Jesusita
12 months ago
The gradient stays the same, right?
KA
Kattie
1 year ago
I recall that fixed costs don't change the slope, so I believe the answer is C, unchanged.
HU
Hui
1 year ago
I'm not entirely sure, but I feel like increasing fixed costs could make the line less steep, right?
MA
Madonna
1 year ago
I remember practicing a similar question, and I think the gradient is related to variable costs, so it should be unchanged.
VI
Vincenza
1 year ago
I think the gradient might stay the same because fixed costs don't affect the variable cost per unit.
AD
Adria
1 year ago
I'm not sure about this one. The question is asking about the gradient, but I'm not sure how fixed costs would impact that. I'll have to review my notes on PV graphs.
MA
Margart
1 year ago
The gradient represents the relationship between profit and volume, so if fixed costs go up, the line should become steeper. I'm confident that A is the right answer.
LA
Latrice
1 year ago
I'm a bit confused on this one. Does the gradient change or does the line just shift up or down? I'll have to think this through.
MI
Miesha
1 year ago
Hmm, this seems straightforward. I think the gradient of the line would be steeper if fixed costs increase.
MA
Margarita
1 year ago
Okay, I remember learning that fixed costs affect the y-intercept, not the gradient. So the line should become less steep if fixed costs increase.
ET
Ettie
1 year ago
I've got this! The customer service manager and major issue manager are definitely the ones who can propose a major case. The proxy contact and customer case manager don't seem like they'd have that authority.
EL
Elfrieda
1 year ago
Ugh, I'm not sure which option is the best approach. I'll need to review the question carefully and think through the different strategies before deciding.
CI
Ciara
2 years ago
Ha! This question is a real fixed cost. I bet the person who wrote it has a twisted sense of humor. Anyway, I'm going with A. Gotta keep that profit line as steep as possible, you know?
BR
Brandon
1 year ago
I'll go with D. Curvi-linear could be an interesting twist.
HE
Hermila
1 year ago
I'm not sure, but I think C. Unchanged sounds safe.
OL
Oliva
1 year ago
I'm going with B. Not as steep seems more logical to me.
GA
Gayla
1 year ago
I think A too. Steeper is the way to go.
ON
Ona
2 years ago
D? Really? I mean, sure, if fixed costs go up, the line might get a bit curvier, but 'curvi-linear'? That sounds like something out of a sci-fi movie, not an accounting exam.
VI
Vincent
2 years ago
I think the answer is C) Unchanged because fixed costs do not affect the gradient of the line on a PV graph.
NO
Noble
2 years ago
I'm not sure about this one. I was leaning towards C, but now I'm second-guessing myself. Guess I need to review my cost accounting notes.
GL
Glory
1 year ago
B) Not as steep
BR
Brianne
1 year ago
Don't worry, it's A. The gradient will be steeper if fixed costs are increased.
MI
Miesha
1 year ago
A) Steeper
WA
Wai
1 year ago
B) Not as steep
AL
Aleisha
1 year ago
Don't worry, it's A. The gradient will be steeper with increased fixed costs.
LE
Lenna
1 year ago
A) Steeper
CA
Candra
2 years ago
I disagree, I believe the answer is B) Not as steep.
BE
Bernardine
2 years ago
I think the answer is A) Steeper.
BR
Brynn
2 years ago
I think the answer is A. If fixed costs increase, the profit line on the PV graph will be steeper, as it will require more sales to break even.
WI
Willie
1 year ago
Exactly, it will require more sales to break even.
ST
Stevie
1 year ago
So, the gradient of the line on the PV graph will be steeper.
MI
Mitsue
1 year ago
Yes, you're correct. If fixed costs increase, the profit line will be steeper.
LA
Lawrence
1 year ago
I think the answer is A.
BL
Blondell
2 years ago
A) Steeper because fixed costs directly impact the break-even point, causing the line to become steeper.
LA
Larue
2 years ago
C) Unchanged
MA
Margot
2 years ago
A) Steeper