Asked by Peter Carroll on Jun 26, 2024

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Dizzy employees a certified operator for each of its 35 rides.Each operator is paid $20 per hour.The cost of the certified operators would best be described as a:

A) fixed cost
B) mixed cost
C) step-variable cost
D) true variable cost

Step-Variable Cost

Costs that remain fixed over a specific range of production or activity, but jump to a higher level once a certain threshold is exceeded.

Fixed Cost

Expenses that do not change with the level of output or sales, such as rent or salaries.

Mixed Cost

Expenses that contain both fixed and variable components and change in total with the level of activity but not proportionately.

  • Assess and interpret variable, fixed, and blended financial charges.
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Caroline CapaprisJul 01, 2024
Final Answer :
A
Explanation :
The cost of certified operators is a fixed cost because it remains constant regardless of the number of rides that are operated or the number of customers visiting the park. The cost of operators is necessary for the basic operation of the park and is not affected by the level of activity.