Assume you are planning a spring break ski trip to Colorado.You plan to stay at a lodge that has a special where the lodge charges you a flat fee of $25 for each package of ten ski lift rides..You believe you will ride the ski lift 40 times during the week, so you budget $100.The ski lift charge is an example of a
A)fixed cost.
B)variable cost.
C)mixed cost.
D)step cost.

Question

Quizplus · Accepted Answer

The ski lift charge is an example of a step cost because the cost remains fixed for a certain level of activity (every 10 rides) and then jumps to a higher level once you move to the next tier (every additional package of 10 rides).

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