(B002) 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 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

(B002) 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 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 y-intercept represents the point where x=0, which is the total fixed cost in this case. Therefore, the correct answer is C.

(B002) Data Extracted from the Accounting Information System of Turner