Data extracted from the accounting information system of TXC Corporation produced the following graph. The equation of the dashed line is y = $25x; the equation of the solid line is y = $200 + $5x. The point where the dashed line intersects the solid line is the:

Question

Quizplus · Accepted Answer

The point where the dashed line intersects the solid line represents the breakeven point, which is where the total revenue is equal to the total cost, and the company is neither making a profit nor a loss. This point is significant for businesses as it gives them an idea of how many units they need to sell to cover their costs. Therefore, the best choice is B.

Data Extracted from the Accounting Information System of TXC Corporation