Ron Moss,a manager of Waterworks Inc.,was reviewing the water bills of a dog daycare and spa.He determined that its highest and lowest bills of $3,800 and $2,400 were incurred in the months of May and November,respectively.If 400 dogs were washed in May and 200 dogs were washed in November,what was the fixed cost per dog associated with the company's water bill?

Question

Quizplus · Accepted Answer

To find the fixed cost per dog, we need to first find the variable cost per dog, which is the difference between the highest and lowest bills divided by the difference in the number of dogs:
Variable cost per dog = ($3,800 - $2,400) / (400 - 200) = $1,400 / 200 = $7 per dog
Then, we can find the fixed cost per dog by subtracting the variable cost per dog from one of the bills and dividing by the number of dogs:
Fixed cost per dog = ($3,800 - ($7 x 400)) / 400 = $1,000 per dog
Therefore, the correct answer is C.

Ron Moss,a Manager of Waterworks Inc