Reference Information

Important Facts to be used in every scenario:

Sale Price

CAPNOS ZERO

$24\mathrm{.}99$

CAPNOS E$-$Z

$24\mathrm{.}99$

Cap Pack Orange

$13\mathrm{.}99$

Cap Pack Mint

$13\mathrm{.}99$

Cap Pack Lavender

$13\mathrm{.}99$

Break Even Analysis

At launch, CAPNOS only offered the CAPNOS ZERO. Regardless of the number of units produced, CAPNOS must pay $$140,000$ annually to Manufacturer United. The Contribution Margin on each unit is $$10\mathrm{.}50$

Question $1(1$ point$)$

How is the payment to Manufacturer United characterized?

Question $1$ options:

Mixed Cost

Fixed Cost

Variable Cost