Each of Acorn Manufacturing's Production Managers Can Oversee 80,000 Machine

question 10

Multiple Choice

Each of Acorn Manufacturing's production managers can oversee 80,000 machine hours of manufacturing activity. The annual salary of a production manager is $55,000. If Acorn has 60,000 hours of manufacturing activity, one manager is needed; for 100,000 hours, two managers are needed; for 150,000 hours, three managers are needed; and so forth. Acorn's salary cost can best be described as a:

• A)variable cost.
• B)curvilinear cost.
• C)step-variable cost.
• D)fixed cost.
• E)step-fixed cost.

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