A base licensing fee of $2,000 is charged for your manufacturing facility, with an additional $2 per item for every item you produce over 1000. Your fee if you produce 5,000 items will be:

a. $10,000

b. $12,000

c. $8,000

If costs rise in a somewhat linear fashion as the number of services offered rises, this may be:

a. a fixed cost

b. A variable cost, since each additional service adds to the cost.

c. A mixed cost, but further analysis is needed through the completion of a scattergraph