Question

Angle of incidence is

• A. Angle between sales and fixed cost lines
• B. Angle between sales and variable cost lines
• C. Angle between sales and total cost lines
• D. Angle between fixed cost and total cost lines

Hint:

The angle of incidence is key for understanding how changes in sales impact profitability.

Answer 1

The Correct Option is C

The angle of incidence refers to the angle between the sales line and the total cost line. This point where the sales and total cost lines intersect determines profitability. A sharp angle indicates a steep rise in costs, making it harder for the business to remain profitable.