With reference to angle of incidence, which of the following statements is correct? 1. It shows the profit earning capacity of business. 2. It represents the angle between sales line and total cost line. Select the correct answer

The correct answer is: Neither 1 nor 2.

Angle of incidence is the angle between the incident ray and the normal. The incident ray is the ray that hits the surface, and the normal is a line perpendicular to the surface. The angle of incidence is important in optics because it determines the amount of light that is reflected and the amount of light that is refracted.

The profit earning capacity of a business is not related to the angle of incidence. The profit earning capacity of a business is determined by the difference between the revenue and the costs of the business.

The angle between the sales line and the total cost line is also not related to the angle of incidence. The sales line is a graph that shows the amount of revenue that a business generates, and the total cost line is a graph that shows the amount of costs that a business incurs. The angle between these two lines is called the break-even point, and it is the point at which the business starts to make a profit.

Therefore, neither statement 1 nor statement 2 is correct.