Chapter 6 – The CEO of Pride Company was presented with a graph that depicted the company’s utility cost as semi-variable. The CEO commented that the fixed-cost component does not look right to him. He proceeded by saying, “if the company shut down the plant for six months, the company would not incur half of these costs.” As the cost accountant of the company, what would you tell the CEO? Do you agree or disagree with him? Explain your answer. (300 words) (10 points)
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