Fallow-Hawke is a nonprofit organization that captures stray deer bewildered within residential communities. Fixed costs are $10,000. The variable cost of capturing each deer is $10.00 each. Fallow-Hawke is funded by a local philanthropy in the amount of $32,000 for 2008. How many deer can Fallow-Hawke capture during 2008?
A) 2,200
B) 3,200
C) 4,200
D) 2,000

Question

Quizplus · Accepted Answer

Fixed costs are $10,000. The variable cost of capturing each deer is $10.00 each. Fallow-Hawke is funded by a local philanthropy in the amount of $32,000 for 2008. So, the total amount available for capturing deer is $32,000 - $10,000 = $22,000. The variable cost of capturing each deer is $10.00 each. So, the number of deer that can be captured is $22,000 / $10.00 = 2,200.

Fallow-Hawke Is a Nonprofit Organization That Captures Stray Deer Bewildered