Consider the following linear mixed-cost function:
Y = $120,000 + $2.70X
Where: $\quad Y =$ total annual maintenance cost
$X =$ mumber of patient-days
What does the $120,000 represent?
A) variable cost per patient-day
B) total variable cost
C) fixed cost per patient-day
D) total fixed cost

Question

Quizplus · Accepted Answer

The $120,000 represents the total fixed cost because it is the portion of the cost that does not change with the level of activity (number of patient-days). It is a constant amount in the cost function.

Consider the Following Linear Mixed-Cost Function: Y = $120,000 Y=\quad Y =Y=

Consider the Following Linear Mixed-Cost Function:
Y = $120,000 $\quad Y =$