Question

Assume you are planning a spring break ski trip to Colorado. You are preparing a budget of your costs. You are staying at a lodge that has a special where the lodge charges you $80 per week for the ski lift regardless of how many times you ride. You believe you will ride the ski lift 40 times during the week. The ski lift charge is an example of a:
A. Variable CostB. Design CostC. Value Chain CostD. Fixed Cos

Answer 1

Answer:

The answer is A.

Explanation:

The example given in the question represents a variable cost. Variable cost can be defined as a cost that changes according to the level of output that is produced. In this case, according to the times the ski lift is used during the week. If the ski lift is used 40 times, than each will be $2, if it is used 20 times, each will be $4. So the correct answer is option A.

I hope this answer helps.