Kim Airedale, a manager of Waggers, Inc., was reviewing the water bills of a dog daycare and spa. She determined that its highest and lowest bills of $3600 and $2800 were incurred in the months of May and November, respectively. If 500 dogs were washed in May and 200 dogs were washed in November, what was the variable cost per dog associated with the company's water bill? (Round your answer to the nearest cent.)
A) $4.00
B) $14.00
C) $7.20
D) $2.67
D) $2.67
Variable cost per unit = Change in total cost / Change in volume of activity
Variable cost per unit = ($3600 - $2800) / (500 dogs - 200 dogs) = $800 / 300 dogs
Variable cost per unit = $2.67 per dog
You might also like to view...
Forcefield analysis is an organizational development intervention ______.
a. technique that brings together participants from all parts of the organization to problem solve or take advantage of opportunities b. that diagrams the current level of performance, the forces hindering change, and the forces driving toward change c. that uses a questionnaire to gather data to use as the basis for change d. in which the change agent makes a direct recommendation for change
If Congress has left a gap in an agency's enabling statute regarding the making of rules necessary for the formulation of agency policy:
a. the statute is rendered void due to vagueness b. the court may fill any gaps by interpreting the statute c. the agency is given an express delegation of authority to create any necessary provisions to fulfill the agency's function d. the statute is sent back to Congress for further explanation and repair
Which of the following is normally viewed as an adjustment to the principal of an estate?
A. Utility expenses. B. Ordinary repair expenses. C. Insurance expenses. D. Major repairs to rental property. E. Property taxes.
A company has net income of $90,000; its weighted-average common shares outstanding are 18,000. Its dividend per share is $0.45, its market price per share is $88, and its book value per share is $76. Its price-earnings ratio equals:
A. 9.0. B. 16.9. C. 12.5. D. 17.6. E. 15.2.