In the mixed?cost function, Y = $88,000 + $7.20X, the $7.20 stands for_____.
A)total fixed cost
B)total cost
C)variable cost per unit of cost driver
D)number of units of the cost driver

Question

Quizplus · Accepted Answer

The $7.20 represents the variable cost per unit of the cost driver, X. The fixed cost is represented by the $88,000, and the number of units of the cost driver is represented by X.

In the Mixed?cost Function, Y = $88,000 + $7