Assume you are planning a spring break ski trip to Colorado.You are preparing a budget of your costs.You are staying at a lodge that has a special where the lodge charges you $25 for the first 30 ski lift rides and an additional charge of $5 for each ride in excess of 30.You believe you will ride the ski lift 40 times during the week, so you budget $75.The ski lift cost is an example of a
A)fixed cost.
B)variable cost.
C)mixed cost.
D)step cost.

Question

Quizplus · Accepted Answer

The ski lift cost is an example of a mixed cost because it has a fixed component ($25 for the first 30 rides) and a variable component ($5 for each ride in excess of 30). Mixed costs contain elements of both fixed and variable costs.

Assume You Are Planning a Spring Break Ski Trip to Colorado.You