Scenario 13-2

question 110

Multiple Choice

Scenario 13-2. Benjamin has been running his kennel service for one year. So far, business has been good and all expenses have been met each month, leaving a small profit. He has a large building capable of handling a total of 35 dogs. Each pen has fresh water supplied through pipes, an automated feeder, and a heating/cooling unit that keeps each pen at a comfortable 68 degrees. Benjamin rents each pen at a price of $30 per day. His total fixed costs each month are $500. Average variable costs are $12.
-In Scenario 13-2, if Benjamin's fixed costs were to rise to $600 per month while all other variables remained the same, what would Benjamin's target return in pen rentals be, using a monthly profit target of $2,000?

• A) 140 pen rentals each month
• B) 145 pen rentals each month
• C) 150 pen rentals each month
• D) 155 pen rentals each month

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Definitions:

Tim Hortons Location

A specific geographical site where a Tim Hortons restaurant is situated, offering coffee, doughnuts, and fast-food items.

Past Week

A term indicating the period of seven days immediately preceding the current day.

Chlorine Level

The concentration of chlorine present in a substance, commonly measured in water to ensure safety and hygiene.

Confidence Interval

A range of values derived from sample data that is likely to contain the true population parameter with a specified level of confidence.