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 vertical ("y") axis shows
A) Dollars
B) Units
C) Contribution margin
D) Total profit

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 vertical ("y") axis shows
A) Dollars 
B) Units 
C) Contribution margin 
D) Total profit

Quizplus · Accepted Answer

The vertical ("y") axis is showing Dollars. This can be inferred from the fact that the equations of both lines include dollar amounts ($25x and $200 + $5x), indicating that the data being represented is in dollars.

Data Extracted from the Accounting Information System of TXC Corporation