In the mixed- cost function, Y = $59,000 + $7.70X, the $59,000 stands for:
A) number of units of the cost driver
B) total fixed cost
C) variable cost per unit of cost driver
D) total cost

Question

Quizplus · Accepted Answer

The $59,000 in the mixed-cost function represents the total fixed cost, which is the portion of the cost that does not change with the level of activity or number of units produced.

In the Mixed- Cost Function, Y = $59,000 + $7