Scenario 13-2

question 24

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, Benjamin would like to determine his breakeven point in dollars instead of pen rentals. When he calculated this using the original data, his breakeven point would be ______.

• A) $834
• B) $956
• C) $1,012
• D) $1,248

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Definitions:

Conscious

The quality or state of being aware of an external object or something within oneself.

Unpredictable

Having the characteristic of being unable to be foreseen or anticipated due to variability or lack of a discernible pattern.

Unique

Being the only one of its kind; unlike anything else.

Enduring

Pertaining to the ability to withstand stress or adversity over a long period.