Final answer:
In the equation r=1.638m+23, the constant term 23 represents the fixed cost.
Step-by-step explanation:
In the given equation r=1.638m+23 where r represents the amount in dollars that Arnold is reimbursed and m represents the number of miles he drives, the constant term 23 represents the fixed cost.
This means that regardless of the number of miles driven, Arnold will always receive a reimbursement of $23. This amount is independent of the variable term in the equation, which represents the reimbursement per mile driven.