.11 96% 3:16 PM Menu e glenn vaca- QUESTION 8 Not complete 3.00 P Flag question

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.11 96% 3:16 PM Menu e glenn vaca- QUESTION 8 Not complete 3.00 P Flag question Points out of Developing an Equation from Average Costs The America Dog and Cat Hotel is a pet hotel located in Las Vegas. Assume that in March, when dog-days (occupancy) were at an annual low of 500, the average cost per dog-day was $14. In July, when dog-days were at a capacity level of 4,000, the average cost per dog-day was $7. (a) Develop an equation for monthly operating costs. (Let X-dog-days per month) Total cost (b) Determine the average cost per dog-day at an annual volume of 24,000 dog-days Check

Explanation / Answer

Total cost at 500 = 500*14= 7000 Total cost at 4000 = 4000*7= 28000 Variable cost = (28000-7000)/(4000-500)= $6 Fixed cost = 28000-(4000*6) = $4000 a Total cost = 4000+6*X b Average cost = 6+(4000/24000) = $6.17(rounded off)

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