Question

Mohave, Inc. produces approximately 4,000 units per month, and it places a quality assurance logo on each of its units. To use this logo, it must pay the quality assurance firm $5,000 per month plus $1 per unit. The cost to Mohave of using the quality assurance logo would be a:

Answer 1

Answer:

B- Mixed cost

Explanation:

A mixed cost can be defined as a cost which include both the fixed cost and the variable cost or the combination of both cost.

In mixed costs fixed cost remain constant while the variable costs varies from one level to the other.

Mixed cost are used to help project financial performance of a business or organisation interm of production because it is an expense which contain both fixed and variable cost component.

Example of fixed cost includes operating license, parking fees, insurance among other because they are constant and those not change.

Example of variable cost includes price of oil and gas because they are not constant but varies or change from time to time.

Therefore the cost to Mohave of using the quality assurance logo would be MIXED COST

Answer 2

Answer:

mixed cost.

Explanation:

The cost to Mohave of using the quality assurance logo would be a mixed cost.