ECONOMICS

Detailed explanation-1: -Utilities including electricity, water and natural gas are usually mixed costs. You are charged a fixed rate for using a base amount and then pay an additional variable charge for any usage over the base amount.

Detailed explanation-2: -Mixed costs are costs that contain a portion of both fixed and variable costs. Common examples include utilities and even your cell phone!

Detailed explanation-3: -The answer is wage costs for employees paid a monthly salary plus commission.

Detailed explanation-4: -Phone and Internet usage are a mixed cost for service businesses. For example, businesses can usually get fixed phone line fees and standard monthly rates for Internet access.

Detailed explanation-5: -For example, if a company’s monthly office space rent is $10, 000 and their monthly utilities bill is $500, then their total monthly cost would be $10, 500. In this case, the rent would be the fixed cost and the utilities would be the variable cost. Together they would make up the mixed cost.