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. Which of the following terms best describes the graph?

Question

Quizplus · Accepted Answer

The graph depicts the relationship between sales volume (x-axis) and total cost/revenue (y-axis), which is the essence of a cost-volume-profit graph. The solid line represents the total cost function, whereas the dashed line represents the total revenue function. The intersection point of both lines represents the breakeven point, which is a key concept in cost-volume-profit analysis.

Data Extracted from the Accounting Information System of TXC Corporation