Abby Is Looking to Expand Her Pet Grooming Business and Wants

question 127

Multiple Choice

Abby is looking to expand her pet grooming business and wants to evaluate the profitability of a potential new market. The area she is looking at has 2,000 homes and Abby estimates that 20 percent of them would be likely to use her service. She charges $45 per grooming and on average customers groom their pets six times a year. Abby estimates her variable costs to expand her business will be $10 per grooming and her fixed costs are $10,000. How much profit would Abby make on this new segment?

• A)$72,240
• B)$98,000
• C)$108,000
• D)$128,000
• E)$410,000

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Definitions:

Legionnaires Disease

A severe form of pneumonia caused by the Legionella bacteria, often spread through inhalation of contaminated water droplets.

Mycobacterium Tuberculosis

The bacterium that causes tuberculosis, a contagious infection that primarily impacts the lungs but can also affect other parts of the body.

Acid-fast Bacilli

A group of bacteria, including Mycobacterium tuberculosis, that resist decolorization by acids after being stained, used in diagnosing tuberculosis and other infections.

Vital Capacity

The maximum amount of air a person can expel from the lungs after a maximum inhalation.