Jackie's Kennels is located in a small city in Western Canada. The company employs three pet attendants, four pet groomers, and two front office staff who book appointments and keep records. The Kennel provides a range of services for dogs and cats including boarding, grooming, and obedience training. The grooming area includes a small retail section that carries dog and cat food, pet supplies, and toys. Assume Jackie's Kennels is currently boarding ten pets. The cost of food to board one more pet is best described as a:
A)Fixed cost
B)Marginal cost
C)Sunk cost
D)Mixed cost

Question

Quizplus · Accepted Answer

The cost of food to board one more pet is a marginal cost because it is the cost to produce one more unit or service. Each additional pet will require additional food, so the cost increases as each new pet is boarded.

Jackie's Kennels Is Located in a Small City in Western