Question
chapter 10 cost accounting Can you explain Contract 2: $35 for the day plus $0.10 per mile traveled ( how to plug the point in
chapter 10 cost accounting
Can you explain Contract 2: $35 for the day plus $0.10 per mile traveled (how to plug the point in the graphics step by step since it needs to be done on a computer )
10-Identifying variable-, fixed-, and mixed-cost functions. The Rolling Hills Corporation operates car rental agencies at more than 20 airports. Customers can choose from one of three contracts for car rentals of 1 day or less:
Contract 1: $55 for the day
Contract 2: $35 for the day plus $0.10 per mile traveled
Contract 3: $1.10 per mile traveles
1.) Express each contract as a linear cost function of the form y=a+bX.
Contract 2: $35 for the day plus $0.10 per mile traveled
2.) Identify each contract as a variable-, fixed-, or mixed-cost function.
Contract 3: $1.10 per mile traveles
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