Data Extracted from the Accounting Information System of Turner Corporation

question 131

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 area to the left of the point where the two lines intersect, where the dashed line is below the solid line, shows where Turner:

• A) Operates at a loss
• B) Operates at a profit
• C) Breaks even if product mix remains constant
• D) Cannot be determined