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Rensing Groomers is in the dog-grooming business. Its operating costs are described by the fol lowing formulas: Grooming supplies (variable) y = $0 + $4x
Rensing Groomers is in the dog-grooming business. Its operating costs are described by the fol lowing formulas: Grooming supplies (variable) y = $0 + $4x Direct labor (variable) y = $0 + $12x Overhead (mixed) y = $9,000 + $2x Milo, the owner, has determined that direct labor is the cost driverfor all three categories of costs. Prepare a flexible budget for activity levels of 510, 580, and 690 direct labor hours. (List variable costs before fixed costs.) RENSING GROOMERS Flexible Budget $\f(c) Calculate the total cost per direct labor hour at each of the activity levels specied in part (a). (Round answers to 2 decimal places, e.g. 10.25.) Activity level 1 $ Activity level 2 $ Activity level 3 $ (d) The groomers at Rensing normally work a total of 650 direct labor hours during each month. Each groomingjob normally takes a groomer 1.30 hours. Milo wants to earn a prot equal to 40% of the costs incurred. Determine what he should charge each pet owner for grooming. (Round answer to 2 decimal places, as. 10.25.) Charge per client $
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