=+9 Rent on a manufacturing plant donated by the local council, where the agreement calls for rent of $100000 to be reduced by

$1 for each direct manufacturing labour-hour worked in excess of 200000 hours, but a minimum rental fee of $20000 must be paid.

Chapter 3: Determining how costs behave 113 M03_HORN3377_02_LT_C03.indd 113 2/09/13 3:20 PM