Northlake Nordic Centre Inc.’s hydro bill is a mixed cost: a fixed connection charge of 1,400 per month plus 0.90 per skier-day. What is the hydro cost in a month with 12,000 skier-days?
Northlake Nordic Centre Inc.’s hydro bill is a mixed cost: a fixed connection charge of 1,400 per month plus 0.90 per skier-day. What is the hydro cost in a month with 12,000 skier-days?
Answer
12200
Cells - Hydro cost at 12,000 skier-days · ±0 Mixed = fixed part + variable per unit × units = 1,400 + 0.90 × 12,000 = **12,200**. Excel: `=1400+0.9*12000`.
Hermanson Vol 2 ch 21 (step and curvilinear costs; the relevant range); OpenStax Managerial Accounting §2.2 (cost drivers, mixed and stepped costs) (concept map I4, I5)