The rent on a store, where the landlord charges $1,200 per month plus a percentage of sales revenue, is a:
A) Fixed cost
B) Variable cost
C) Mixed cost
D) Stepwise linear cost

Question

Quizplus · Accepted Answer

The rent on this store is a mixed cost because it includes a fixed cost (the $1,200 per month) and a variable cost (the percentage of sales revenue). The amount of rent will vary based on the level of sales revenue, but it will always have a fixed component as well.

The Rent on a Store, Where the Landlord Charges $1,200