In a CVP graph, what is represented by the vertical-axis intercept of the total cost line?

The vertical-axis intercept of the total cost line in a Cost-Volume-Profit (CVP) graph represents total fixed costs. This is because total fixed costs are incurred regardless of the level of production or sales volume, which means that when no units are produced or sold, the total cost is equal to the total fixed cost.

In a CVP analysis, the total cost line starts at the point representing total fixed costs on the y-axis. As production increases, variable costs are added, which creates a slope in the total cost line. Thus, the y-intercept directly indicates the fixed costs that will be incurred even when production is at zero. Understanding this concept is crucial for analyzing how different levels of production and sales impact overall costs and profitability.