The following cost formula was developed using monthly data for a retail clothing store:
Total cost = $50,000 + ($250 × number of customers)

The number $250:
A) is the committed variable.
B) is the dependent variable.
C) is the mixed rate.
D) is the variable rate.

Question

The following cost formula was developed using monthly data for a retail clothing store:  
Total cost = $50,000 + ($250 × number of customers)
 
The number $250:
A) is the committed variable.
B) is the dependent variable.
C) is the mixed rate.
D) is the variable rate.

Quizplus · Accepted Answer

The slope corresponds to the variable rate?.Therefore, $250 is the variable rate.

The Following Cost Formula Was Developed Using Monthly Data for a Retail