The correct answer is Fixed cost.
Cost a $75,000 $75,000 cost b $120,000 $180,000 cost c $65,000 $80,000 total costs $260,000 $335,000 cost a is a Fixed cost.
Since cost A remains for bith level of output in unit, it menas it does not changes, so it means it is fixed cost. Fixed cost refers to the cost which does not changes with the change in output. so it remains same for all level of the activities. So the correct answer is Fixed Cost.
What is Fixed cost?
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