Problem:
Kohler Manufacturing typically achieves one of three production levels in any given year: 8 million pounds of steel, 10 million pounds of steel, or 16 million pounds of steel. In tracking some of its costs, Kohler's controller discovered one cost that was $10 per pound no matter what the production level for the year. This is an example of a
Select one:
a. variable cost.
b. semifixed cost.
c. fixed cost.
d. semivariable cost.
Note: Provide support for your rationale.