The following cost formula was developed using monthly data for Montreal Clothing Store.Total cost = $75,620 + ($242 × number of customers)
-Refer to the Figure.What does $242 represent?
A)the independent variable
B)the dependant variable
C)the intercept
D)the variable rate

Question

Quizplus · Accepted Answer

$242 represents the variable rate, which is the amount of cost that is incurred per additional customer.

The Following Cost Formula Was Developed Using Monthly Data for Montreal