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The owner of a gas station records the number of gallons of gas he sells over a period of time. He notices that the number of gallons of gas he sells depends linearly on the price he charges for each gallon. When he charges $1.96 per gallon of gas he sells 800 gallons of gas each day. When he charges $2.65 per gallon he sells 400 gallons. Which one of the following graphs illustrate this situation?
Income Statement
A financial statement that reports a company's financial performance over a specific accounting period, detailing revenues, expenses, and net income or loss.
Perpetual Inventory Method
An inventory accounting method where updates to the inventory records are made immediately following each sale or purchase.
Sales Returns and Allowances
A reduction in sales revenue that occurs when customers return goods or receive allowances for unsatisfactory goods, impacting the net sales figure.
Merchandise Inventory
Goods or products that a company holds for the primary purpose of selling them to customers.
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