6. A cost that changes in total in direct proportion to a change in the cost driver is a:

Select one:

A. semi-variable cost.

B. step-variable cost.

C. variable cost.

D. fixed cost.

7. The cost equation, y = $57 000 + $2.75x, represents:

Select one:

a. A variable cost

B. A mixed cost

C. Cannot be determined

D. A fixed cost

8. Aladdins Burgers currently produces and sells 4000 burgers per month with the following costs:

Variable costs	$0.50 per unit
Fixed costs	$2000

Aladdin has recently switched food suppliers and anticipates that variable costs will decrease by $0.05 per unit. In addition, Aladdin has renegotiated his store lease and fixed costs will be dropping by $40 per month.

What will be Aladdins new cost equation?

Select one:

A. Total cost = $1,600 + $0.45x

B. Total cost = $1,960 + $0.45x

C. Total cost = $1,960 + $0.50x

D. Total cost = $1,600 + $0.50x