Total mixed cost graphs intersect the y-axis at the level of fixed costs.

Name: Total mixed cost graphs intersect the y-axis at the level of fixed costs.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

This is true because fixed costs do not vary with changes in the level of activity and therefore they are represented by the y-axis intercept of the total mixed cost graph. The variable costs, on the other hand, increase as the level of activity increases and are represented by the slope of the graph.

Total Mixed Cost Graphs Intersect the Y-Axis at the Level