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 donates $2 of every entrance fee to a local homeless shelter. This charitable contribution 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 charitable contribution of $2 per entrance fee is a true variable cost because it varies directly with the number of patrons entering the park.

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