Consider the following linear mixed-cost function:
Y = $110,000 + $5.50X
Where: Y = total annual custodial cost
$$X = \text { number of patient-days }$$
What does the $5.50 represent?
A) total fixed cost
B) total variable cost
C) fixed cost per patient-day
D) variable cost per patient-day

Question

Quizplus · Accepted Answer

The $5.50 represents the variable cost per patient-day, which is the cost that changes with the number of patient-days.

Consider the Following Linear Mixed-Cost Function: Y = $110,000 X= number of patient-days X = \text { number of patient-days }X= number of patient-days

Consider the Following Linear Mixed-Cost Function:
Y = $110,000 $X = \text { number of patient-days }$