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Scenario 13-2

Question 90

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 target return in pen rentals be, using a monthly profit target of $2,000?


A) 140 pen rentals each month
B) 145 pen rentals each month
C) 150 pen rentals each month
D) 155 pen rentals each month

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