Consider the Following Linear Mixed-Cost Function:
Y = $120,000 $\quad Y =$

Multiple Choice

Consider the following linear mixed-cost function:
Y = $120,000 + $2.70X
Where: $\quad Y =$ total annual maintenance cost
$X =$ mumber of patient-days
What does the $120,000 represent?

A) variable cost per patient-day
B) total variable cost
C) fixed cost per patient-day
D) total fixed cost