Steve Johnson has decided to lease a vehicle as opposed to purchasing it.The lease agreement calls for a monthly payment of $400.Any mile driven above 1,000 per month will cost an additional $.10 per mile.Steve's lease cost in January can be considered to be:
A)Fixed.
B)Variable.
C)Mixed.
D)Both B and C

Question

Quizplus · Accepted Answer

Steve's lease cost is considered mixed because it has a fixed component (the monthly payment of $400) and a variable component (the additional cost per mile for any mile driven above 1,000 per month).

Steve Johnson Has Decided to Lease a Vehicle as Opposed