Marketing 5th Edition by Dhruv Grewal,Michael Levy

Exercise 15

Assume you have decided to buy an advertisement in the local newspaper to publicize your new pet grooming service. The cost of the ad is $1,000. You have decided to charge $40 for a dog grooming, and your variable costs are $20 for each dog. How many dogs do you have to groom to break even on the cost of the ad What is your break-even point if you charge $ 60 per dog