Tamara's Truck Rental rents small "box" trucks to college students to move items from their parent's home to a campus apartment. The Rent Expense for a 12-foot-long box truck, where Tamara's Trucks charges a flat fee of $150 per rental plus $0.79 per mile driven, is a for the person renting the truck. Fixed cost Variable cost Mixed cost Stepwise linear cost

Question

Business

Valeria Riddle

25 July, 13:27

Tamara's Truck Rental rents small "box" trucks to college students to move items from their parent's home to a campus apartment. The Rent Expense for a 12-foot-long box truck, where Tamara's Trucks charges a flat fee of $150 per rental plus $0.79 per mile driven, is a for the person renting the truck. Fixed cost Variable cost Mixed cost Stepwise linear cost

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Answers (1)

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Douglas Andersen · Answer 1

Flat fee = fixed costs

Variable cost = rental plus

Explanation:

Giving the following information:

The Rent Expense for a 12-foot-long box truck, where Tamara's Trucks charges a flat fee of $150 per rental plus $0.79 per mile driven.

We need to determine what kind of costs are.

We know that fixed costs do not change with production variation. In this case, fixed costs don't change with milage. Therefore, the flat fee is a fixed cost.

Variable costs increase or decrease with variation in production. The total cost of rental plus varies with the number of miles. The rental plus is a variable cost.