Developing an Equation from Average Costs

Paradise Pub is a high-end dog hotel located in New York. Assume that in March, when dog-days occupancy was at an annual low of 500 days, the average cost per dog-day was $26. In July, when dog-days were at a capacity level of 4,500, the average cost per dog-day was $10.

(a) Develop an equation for monthly operating costs. (Let X = dog-days per month)

Total cost = $Answer

+ $Answer

* X

(b) Determine the average cost per dog-day at an annual volume of 28,000 dog-days. (Round to the nearest cent.)

$Answer

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