Data Extracted from the Accounting Information System of Turner Corporation

question 30

Multiple Choice

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 horizontal ("x") axis shows:

• A) Fixed costs
• B) Revenues
• C) Units
• D) Variable costs

---

Definitions:

Income Statement

A financial statement that shows a company's revenues, expenses, and net income over a specific period of time.

Sales

The total amount of revenue generated by a company from the sale of goods or services before any expenses are deducted.

Percent Change

A mathematical calculation that indicates the degree of change over time, expressed as a percentage.

Fees Earned

Revenue recognized by a company for services provided to clients, recorded as earned income on the income statement.