Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Kim Airedale, a manager of Waggers, Inc., was reviewing the water bills of a dog daycare and spa. She determined that its highest and lowest
Kim Airedale, a manager of Waggers, Inc., was reviewing the water bills of a dog daycare and spa. She determined that its highest and lowest bills of $3,600 and $2,000 were incurred in the months of May and November, respectively. If 400 dogs were washed in May and 200 dogs were washed in November, what was the variable cost per dog associated with the company's water bill? (Round your answer to the nearest cent.) A. $8.00 B. $9.00 C. $10.00 D. $3.33 Zeke was a professional classical guitar player until a motorcycle accident left him disabled. After long months of therapy, he hired an experienced luthier and started a small shop to make and sell Spanish guitars. The guitars sell for $600, and the fixed monthly operating costs are as follows: Rent and utilities $700 Wages and benefits to luthier $2,200 Other expenses $479 Zeke's accountant told him about contribution margin ratios, and Zeke understood clearly that for every dollar of sales, $0.75 went to cover his fixed costs, and anything above that point was profit. Zeke wishes to earn $5,000 of operating profit each month. Calculate the amount of sales revenue required to achieve the target profit. (Round your answer to the nearest dollar.) O A. $11,172 B. $13,516 O C. $33,516 D. $4,505 Robusta Coffee Importers sold 3,000 units in October at a sales price of $40 per unit. The variable cost is $15 per unit. The monthly fixed costs are $8,000. What is the operating income earned in October? A. $120,000 B. $67,000 O C. $45,000 O D. $75,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started