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 a flat fee of $25 for up to 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 a step cost because it remains constant for a certain level of activity (up to 10 rides for $25) and then increases in steps as the activity level exceeds that threshold.

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