Mohave,Inc.produces approximately 4,000 units per month,and it places a quality assurance logo on each of its units.To use this logo,it must pay the quality assurance firm $5,000 per month plus $1 per unit.The cost to Mohave of using the quality assurance logo would be a:

Question

Quizplus · Accepted Answer

The cost of using the quality assurance logo includes a fixed cost of $5,000 per month, which doesn't change based on the number of units produced, as well as a variable cost of $1 per unit, which increases with the number of units produced. Therefore, the cost is a mixed cost, and the best choice is B.