Data Extracted from the Accounting Information System of TXC Corporation

question 121

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 point where the dashed line intersects the solid line is the:

• A)Variable cost per unit
• B)Breakeven point
• C)Unit contribution margin
• D)None of the above

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Definitions:

Performance Rating

An assessment of how well an individual, group, or system performs against defined criteria or objectives.

Normal

Pertaining to something that conforms to a standard or a pattern that is usual, typical, or expected.

Trained Employee

An individual who has received instruction and practice in a particular skill or type of behavior for the workplace.

Time Study

An analytical procedure used to determine the standard time required for a skilled worker to perform a given task under specified conditions and at a defined rate of performance.