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Each of Boggart s production managers ( annual salary cost, $ 4 5 , 0 0 0 ) can oversee 6 0 , 0 0

Each of Boggarts production managers (annual salary cost, $45,000) can oversee 60,000 machine hours of manufacturing activity. Thus, if the company has 50,000 hours of manufacturing activity, one manager is needed; for 75,000 hours, two managers are needed; for 125,000 hours, three managers are needed; and so forth. Boggarts salary cost can best be described as a:
A. variable cost.
B. step-fixed cost.
C. semivariable cost.
D. step-variable cost.
E. fixed cost.

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