Indigo charges $ 30 per day to board a dog. The variable cost to feed and handle a dog is $ 5 per day. The fixed costs for maintaining the Indigo are $ 161,000 per year, and the companys income tax rate is 30%. The measure of volume is dog-days. For example, 3 dogs boarded for 4 days plus 1 dog boarded for 6 days yields 18 dog-days of service (and revenue).

If the firm expects an annual volume of 7,500 dog-days of boarding, what is the expected after-tax profit?

Expected after-tax profit

$

If the firm anticipates an annual volume of 6,500 dog-days of boarding, what is the margin of safety in terms of dog-days? (Round answer to 0 decimal places, e.g. 125.)

Margin of safety

dog-days

The owner believes that an after-tax profit of $ 104,800 is needed to justify being in business. How many dog-days are required to meet this goal? (Round answer to 0 decimal places, e.g. 125.)

Dog-days required

dog-days

Calculate the percentage increase in dog-days between parts (a) and (c). (Round answer to 1 decimal place, e.g. 15.5%.)

Percentage increase

%