A delivery company pays:

a fixed vehicle tracking-system fee of $2,000 per month, plus
$0.15 for every kilometre travelled.

Which statement best describes this cost?

Question

A delivery company pays:

a fixed vehicle tracking-system fee of $2,000 per month, plus
$0.15 for every kilometre travelled.

Which statement best describes this cost?

Accepted Answer

It is a mixed cost because it contains both fixed and variable components.

Answer

It is variable because total cost increases when kilometres increase.

Answer

It is step-fixed because the cost rises whenever another kilometre is travelled.

Answer

It is semi variable because the company must pay $2,000 each month.

Crowdly