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Consider the Following Linear Mixed-Cost Function:
Y = $110,000 X= number of patient-days X = \text { number of patient-days }

Question 31

Multiple Choice

Consider the following linear mixed-cost function:
Y = $110,000 + $5.50X
Where: Y = total annual custodial cost
X= number of patient-days X = \text { number of patient-days }
What does the $5.50 represent?


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

Correct Answer:

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