Jose Foster, a manager of Prettiest Pooch, Inc., was reviewing the water bills o

Question

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.) $2,000 O$1,100 O$1,800 $3,800

Explanation / Answer

Cost at highest level of activity                  3,800.00 Cost at Lowest level of activity                  2,000.00 Highest level of activity                     600.00 Lowest Level of activity                     200.00 Variable cost per unit = (3800-2000)/(600-200) Variable cost per unit = 1800/400 Variable cost per unit = $4.50 Fixed Costs= 3800-600*4.50 Fixed Costs = $1100 So correct answer is $1100

Related Questions

Navigate

• Browse (All)
• Browse J
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.