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.
Correct Answer:
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