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You are considering moving off campus. You have found a one-bedroom apartment very near campus that ...

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You are considering moving off campus. You have found a one-bedroom apartment very near campus that ...

You are considering moving off campus. You have found a one-bedroom apartment very near campus that is clean and safe. However, you do not want to live alone. A one-bedroom apartment is roomy enough to have one or two roommates. The manager discourages having more than one individual in an apartment and so charges rent per person. The relationship between the number of roommates, the total cost, and the cost per person is:

Number of Roommates

Total Cost

Cost per Person

1	$ 600	$600
2	1,200	600
3	1,800	600

This is an example of a

▸ fixed cost.

▸ step cost.

▸ variable cost.

▸ mixed cost.

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Managerial Accounting

Edition: 4^th

Author: Davis

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