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can you please analysis every question as well please i really appreciate it thank you . Boston opened a pet care center. Monthly fixed costs
can you please analysis every question as well please i really appreciate it thank you .
Boston opened a pet care center. Monthly fixed costs of the center are: Rent: $800 Salaries: $1400 Other Fixed Expenses: $100 Total Fixed Cost: $2300 The cost driver for variable cost is pet-days. One pet day is one day in day care for one pet. Variable cost is $10 per pet day. An Average day has 8 pets in the care centre. The charge is $ 30 per day per pet 1. What is the Break Even Point for the pet Care Centre in Pet Days and in Revenue Dollar? (5 marks) 2. Suppose the attendance of a month Is 176 pet days (8 pets for 22 days) what amount will Boston have left after paying all her expenses (5 marks) 3. Compute the amount Boston will have left after paying all her expenses for each of the following situations: (Consider each case independently) a. Average attendance is 9 pets instead of 8, generating 198 pet days (9 pets for 22 days) (5 Marks) b. Variable cost increase to $12 per pet (5 Marks) c. Boston spend $300 for advertisement, which increases daily attendance to 10 instead of 8 (10 pets for 22 days) (5 Marks) d. Boston begins charging $35 per day and average daily attendance is 7 pets instead of 8 (7 pets for 22 days) Step by Step Solution
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