Consider the Following Linear Mixed-Cost Function: Y = $72,000

question 81

Multiple Choice

Consider the following linear mixed-cost function: Y = $72,000 + $7.70X
Where: Y = total annual maintenance cost
What does the $72,000 represent?

• A)variable cost per patient-day
• B)total variable cost
• C)fixed cost per patient-day
• D)total fixed cost

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