The Student Health Center Employs One Doctor, Three Nurses, and Several

question 48

Multiple Choice

The student health center employs one doctor, three nurses, and several other employees. How would you classify (1) the nurses' salary and (2) film and other materials used in radiology to take X-rays? Assume the activity is the number of students visiting the health center.
$\begin{array} {cc } & \text { Nurse's Salaries } & \text { Film and Other Materials Used in Radology } \\\end{array}$
A. $\begin{array} {cc } & \text { Fixed cost } &&&&&&&&\text { Fixed cost } \\\end{array}$
B. $\begin{array} {cc } & \text { Fixed cost } &&&&&&&& \text { Variable cost } \\\end{array}$
C. $\begin{array} {cc } & \text { Variable cost } &&&&&&& \text { Fixed cost } \\\end{array}$
D. $\begin{array} {cc } & \text { Variable cost } &&&&&&& \text { Variable cost } \\\end{array}$

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Definitions:

Striking Price

The predetermined price at which the holder of an option contract can buy (call) or sell (put) the underlying asset.

Callable Bonds

Callable bonds are bonds that can be redeemed by the issuer prior to their maturity date at a specified call price.

Convertible Bonds

Bonds that can be converted into a predetermined number of the issuing company's shares at certain times during its life, usually at the discretion of the bondholder.

Warrants

Financial derivatives that give the holder the right, but not the obligation, to buy or sell a security, usually equity, at a predetermined price before expiration.