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 solid line represents:
A) Total variable costs
B) Total fixed costs
C) Total costs
D) Total revenues

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 solid line represents:
A) Total variable costs 
B) Total fixed costs 
C) Total costs 
D) Total revenues

Quizplus · Accepted Answer

The solid line represents the total cost, as it includes both the fixed cost ($200) and the variable cost ($5x).

Data Extracted from the Accounting Information System of Turner Corporation