From a cost behavior perspective, what type of cost is this?
2. If Ai plans to extract 875 tons, is the company being very "cost effective" with respect to Cortez's billing rates? Briefly discuss.
C. 1. Step-fixed.
2. No. Notice that the bill will be $70,000 for A-1's tonnage, and the company could have Cortez haul up to 1,099 tons for the same cost. Ideally, Ai should try to move to the right side of the step to get a better return on its investment.

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The Answer of From a cost behavior perspective, what type of cost is this?
2. If Ai plans to extract 875 tons, is the company being very "cost effective" with respect to Cortez's billing rates? Briefly discuss.
C. 1. Step-fixed.
2. No. Notice that the bill will be $70,000 for A-1's tonnage, and the company could have Cortez haul up to 1,099 tons for the same cost. Ideally, Ai should try to move to the right side of the step to get a better return on its investment.

From a Cost Behavior Perspective, What Type of Cost Is