Kasha has decided to keep her new power boat in a "drystack" storage facility rather than in the water at a marina.The storage facility charges her a fee of $500 per year,plus $25 each time she calls ahead and asks the facility to put her boat in the water for the day or weekend.The facility is a using a pricing tactic known as:

Question

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The storage facility is using a two-part pricing tactic, which involves charging a fixed fee (in this case, $500 per year) and an additional fee for each use of the service (in this case, $25 each time Kasha calls ahead to have her boat put in the water). This approach is common in service industries, where fixed costs (such as equipment and maintenance) are high but variable costs (such as labor and materials) are relatively low.

Kasha Has Decided to Keep Her New Power Boat in a "Drystack