Answer:
Flat fee= fixed costs
Variable cost= rental plus
Explanation:
Giving the following information:
The Rent Expense for a 12-foot-long box truck, where Tamara's Trucks charges a flat fee of $150 per rental plus $0.79 per mile driven.
We need to determine what kind of costs are.
We know that fixed costs do not change with production variation. In this case, fixed costs don't change with milage. Therefore, the flat fee is a fixed cost.
Variable costs increase or decrease with variation in production. The total cost of rental plus varies with the number of miles. The rental plus is a variable cost.