The Owner of a Gas Station Records the Number of Gallons

question 53

Multiple Choice

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?

• A) None of these options

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Definitions:

Direct Labor Budget

An estimate of the total amount of labor cost that will be needed to produce the products a company plans to manufacture in a specific period.

Variable Manufacturing Overhead

Indirect manufacturing costs that fluctuate with production volume, such as utility costs for running production equipment.

Fixed Manufacturing Overhead

The total of all production costs that do not change with the level of output, including salaries, rent, and insurance.

Depreciation

The allocation of the cost of an asset over its useful life, reflecting the loss in value over time.