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Lincoln Incorporated Observed That When 30,000 Units Were Sold, a Particular

Question 40

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Lincoln Incorporated observed that when 30,000 units were sold, a particular cost amounted to $90,000, or $3.00 per unit. When the sales volume increased by 20%, the cost also increased to $108,000(i.e., $3.00 per unit) . The cost that Lincoln is studying can best be described as a:


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

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