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 point where the dashed line intersects the solid line is the:
A) Variable cost per unit
B) Breakeven point
C) Unit contribution margin
D) None of the above

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 point where the dashed line intersects the solid line is the:
A) Variable cost per unit 
B) Breakeven point 
C) Unit contribution margin 
D) None of the above

Quizplus · Accepted Answer

The point where the dashed line intersects the solid line is the breakeven point, which means that the company is not making a profit or loss at this point. It is the point where total revenue equals total costs, which is an important metric for businesses to monitor.

Data Extracted from the Accounting Information System of Turner Corporation