Use the following to answer questions 3-5:

Dizzy Amusement Park is open from 8:00 am till midnight every day of the year. Dizzy

charges its patrons a daily entrance fee of $30 per person which gives them unlimited access

to all of the park's 35 rides.

3. For liability insurance, Dizzy pays a set monthly fee plus a small additional amount

for every patron entering the park. The cost of liability insurance would best be

described as a:

A) fixed cost

B) mixed cost

C) step-variable cost

D) true variable cost

4. Dizzy employees a certified operator for each of its 35 rides. Each operator is paid $20

per hour. The cost of the certified operators would best be described as a:

A) fixed cost

B) mixed cost

C) variable cost

D) direct material

5. Dizzy donates $2 of every entrance fee to a local homeless shelter. This charitable

contribution would best be described as a:

A) fixed cost

B) mixed cost

C) marginal cost

D) true variable cost