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.