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Paper 1 · June 2015 · Break-even analysis

What do the following break-even charts show regarding the profitability and risk attached to products X and Y?

ProfitabilityRisk
AY is greaterY is greater
BX is greaterX is less
CY is lessY is less
DX is lessX is greater
AProfitability: Y is greater. Risk: Y is greater.
BProfitability: X is greater. Risk: X is less.
CProfitability: Y is less. Risk: Y is less.
DProfitability: X is less. Risk: X is greater.

ZIMSEC Accounting 9197/1 Paper 1, June 2015, Q39

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