Question

The slopes of the two non-horizontal lines on the break-even chart are
      
a.The variable cost per unit and the selling price per unit.
      
b.The variable cost per unit and the fixed cost per unit.
      
c.The total cost and the total revenue.
      
d.The fixed cost per unit and the selling price per unit.

Answer 1

OPTION A -----the variable cost per unit and the selling price per unit

Because in the the break even chart, there are three parameters plotted on vertical axis(y axis) I.e fixed cost, variable cost, sales and units on the horizontal axis(x axis).

Variable cost and sales line are not parallel to horizontal axis whereas fixed cost line is parallel to horizontal axis.

Slope is equal to parameter on Y axis divided by parameter on X axis. So slope of two non horizontal lines on break even chart are variable cost per unit and selling price per unit