Data extracted from the accounting information system of Turner 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 horizontal ("x") axis shows:
A) Fixed costs
B) Revenues
C) Units
D) Variable costs

Question

Data extracted from the accounting information system of Turner 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 horizontal ("x") axis shows:
A) Fixed costs 
B) Revenues 
C) Units 
D) Variable costs

Quizplus · Accepted Answer

The horizontal ("x") axis on the graph represents units. This can be determined by looking at the labels on the horizontal axis and the fact that the two equations provided involve a variable (x) that is often associated with units.

Data Extracted from the Accounting Information System of Turner Corporation