Dizzy Amusement Park is open from 8:00 am till midnight every day of the year. Dizzy charges its patrons a daily entrance fee of $30 per person which gives them unlimited access to all of the park's 35 rides.Dizzy employees a certified operator for each of its 35 rides. Each operator is paid $20 per hour. The cost of the certified operators would best be described as a:
A) fixed cost
B) mixed cost
C) step-variable cost
D) true variable cost

Question

Quizplus · Accepted Answer

The cost of the certified operators is a fixed cost because it remains constant regardless of the number of visitors or the frequency with which the rides are used.

Dizzy Amusement Park Is Open from 8:00 Am Till Midnight