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 horizontal ("x") axis shows
A) Fixed costs
B) Revenues
C) Units
D) Variable costs

Question

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 horizontal ("x") axis shows
A) Fixed costs 
B) Revenues 
C) Units 
D) Variable costs

Quizplus · Accepted Answer

The horizontal ("x") axis shows the units produced or sold, as it is a measure of quantity. Fixed costs and variable costs are typically represented on the vertical axis, whereas revenues are represented as the dependent variable on the vertical axis in this graph.

Data Extracted from the Accounting Information System of TXC Corporation