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

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

Quizplus · Accepted Answer

The $7.70 represents the variable cost per unit of the cost driver in the mixed-cost function.

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