When operating miles increase:
A) Fixed cost/mile and operating costs increase
B) Operating costs decrease and fixed cost/mile decrease
C) Operating costs decrease and fixed cost/mile increase
D) Operating cost increase and fixed cost/mile decrease

Question

Quizplus · Accepted Answer

As operating miles increase, the total operating costs generally increase due to variable costs, but the fixed cost per mile decreases because the fixed costs are spread over more miles.

When Operating Miles Increase