Miranda was reviewing the water bill for her dog day care and spa and determined that her highest bill,$4,600,occurred in July when she washed 500 dogs and her lowest bill,$3,200,occurred in February when she washed 175 dogs.What was the fixed cost associated with Miranda's water bill?

Question

Quizplus · Accepted Answer

C) Variable cost per unit = Change in total cost / Change in volume of activity
Variable cost per unit = ($4,600 - $3,200) / (500 - 175) = $1,400 / 325
Variable cost per unit = $4.31 per dog
 11ea8870_360f_c833_bb89_2db59a8c757b_TB5025_00 *$4,600 - $2,155 = $2,445

Miranda Was Reviewing the Water Bill for Her Dog Day