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Brock Morton Has a Fast-Food Franchise and Must Pay a Franchise

Question 80

Multiple Choice

Brock Morton has a fast-food franchise and must pay a franchise fee of $45,000 plus 4% of gross sales. In terms of cost behavior, the fee is known as a:


A) variable cost.
B) fixed cost.
C) step-fixed cost.
D) semivariable cost.
E) curvilinear cost.

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