In the equation y = $9.90x + $120,014
A) $120,014 are the total variable costs.
B) $120,014 are the total fixed costs.
C) $120,014 are the total costs.
D) $120,014 are the total overhead costs.

Question

Quizplus · Accepted Answer

In the given equation, the constant term ($120,014) represents the fixed costs, while the coefficient of x ($9.90) represents the variable cost per unit. Therefore, option B is the correct choice as $120,014 are the total fixed costs.

In the Equation Y = $9.90x + $120,014