Parker Corporation Observed That When 25,000 Units Were Sold, a Particular

Multiple Choice

Parker Corporation observed that when 25,000 units were sold, a particular cost amounted to $75,000, or $3.00 per unit. When volume increased by 10%, the cost totaled $82,500 (i.e., $3.00 per unit) . The cost that Parker is studying can best be described as a:

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