Jose Foster, a manager of Prettiest Pooch, Inc, was reviewing the water bills of a dog daycare and spa
He determined that its highest and lowest bills of $3,800 and $2,000 were incurred in the months of May and November, respectively. If 600 dogs were washed in May and 200 dogs were washed in November, what was the fixed cost associated with the company's water bill? (Round any intermediate calculations to the nearest cent and your final answer to the nearest dollar.)
A) $2,000
B) $3,800
C) $1,100
D) $1,800
C .C) Variable cost per unit = Change in total cost / Change in volume of activity
Variable cost per unit = ($3,800 - $2,000 ) / (600 dogs - 200 dogs) = $1,800 / 400 dogs
Variable cost per unit = $4.50 per dog
Number of dogs washed in May 600
Variable costs incurred in May ($4.50 per dog x 600 dogs) $2,700.00
Fixed costs incurred in May ($3,800 - $2,700.00 ) $1,100
You might also like to view...
The "dormant" Commerce Clause limits the authority of the states to interfere with the flow of interstate commerce by:
A. prohibiting state laws that openly discriminate against interstate commerce. B. prohibiting state legislation that unduly burdens intrastate commerce. C. limiting a state's ability to tax vendors. D. limiting the states from furthering only state interests.
The number of issues in a negotiation, together with the relationship between the negotiator the other party, is often the primary determinant of whether a negotiator uses a distributive or integrative strategy. Single-issue negotiations tend to dictate which type of strategy?
What will be an ideal response?
________ logistics starts with the marketplace and works backward to the factory or even to sources of supply
A) Outbound B) Customer-centered C) Upstream D) Reverse E) Inbound
The transactions listed in the following questions occurred in a private, not-for-profit hospital during 20X8. For each transaction, indicate its effect on the hospital's statement of operations for the year ended December 31, 20X8.Transaction: A gain was realized from the sale of endowment investments. The gain is not expendable.Effect on Statement of Operations:
A. The transaction is reported on the statement of operations, but there is no effect on operating income. B. The transaction is not reported on the statement of operations. C. Increases operating income. D. Decreases operating income.