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Scenario 13-2

Question 96

Multiple Choice

Scenario 13-2. Benjamin has been running his kennel service for one year. So far, business has been good and all expenses have been met each month, leaving a small profit. He has a large building capable of handling a total of 35 dogs. Each pen has fresh water supplied through pipes, an automated feeder, and a heating/cooling unit that keeps each pen at a comfortable 68 degrees. Benjamin rents each pen at a price of $30 per day. His total fixed costs each month are $500. Average variable costs are $12.
-In Scenario 13-2, if Benjamin's fixed costs were to rise to $600 per month while all other variables remained the same, what would Benjamin's new breakeven point be?


A) 30 pen rentals each month
B) 32 pen rentals each month
C) 34 pen rentals each month
D) 36 pen rentals each month

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