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 solid line intersects the y-axis at the
A) Fixed cost per unit
B) Variable cost per unit
C) Total fixed cost
D) Total variable cost

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 solid line intersects the y-axis at the
A) Fixed cost per unit 
B) Variable cost per unit 
C) Total fixed cost 
D) Total variable cost

Quizplus · Accepted Answer

The solid line represents the equation for total cost (fixed cost plus variable cost), and the intersection point with the y-axis represents the total fixed cost. Therefore, the best choice is C.

Data Extracted from the Accounting Information System of TXC Corporation