When using a graph of total mixed costs,the y-intercept represents:
A)unit mixed costs
B)total mixed costs
C)total variable costs
D)total fixed costs
E)None of the answer choices is correct.

Question

Quizplus · Accepted Answer

The y-intercept represents the total fixed costs in a graph of total mixed costs. This is because at the point where the line intersects the y-axis (y-intercept), there are no units of activity, therefore all costs incurred at that point must be fixed costs, as variable costs would require some level of activity.

When Using a Graph of Total Mixed Costs,the Y-Intercept Represents