You run a donut shop. You rent your mix master for $200 per month and the mix

master has a daily capacity of 2,834 donuts. Anything over 2,834 donuts per day

will require the rental of another mix master.

In the above example, the $200 figure is best referred to

0 as a variable cost

O as the relevant range of variable costs

( as the relevant range of one mix master

() as a fixed cost