Data Extracted from the Accounting Information System of TXC Corporation

question 58

Multiple Choice

Data extracted from the accounting information system of TXC 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 right of the point where the two lines intersect, where the dashed line is above the solid line, shows where TXC:

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