Table 19-1 Linda and Sandy Own the Preppy Puppy, a Dog Grooming

question 40

Multiple Choice

Table 19-1
$\begin{array}{|c|c|c|}\hline & \text { Bathing } & \text { Grooming } \\\hline \text { Linda } & 60 & 20 \\\hline \text { Sandy } & 50 & 25\\\hline\end{array}$ Linda and Sandy own The Preppy Puppy, a dog grooming business. Table 19-1 lists the number of dogs Linda and Sandy can each bathe and groom in one week.
-Refer to Table 19-1.Select the statement that accurately interprets the data in the table.

• A) Linda has an absolute advantage in dog bathing and Sandy has an absolute advantage in dog grooming.
• B) Sandy has an absolute advantage in dog bathing and Linda has an absolute advantage in dog grooming.
• C) Sandy has an absolute advantage in dog bathing and dog grooming.
• D) Linda has an absolute advantage in dog bathing and dog grooming.

---

Definitions:

Variable Maintenance

Maintenance costs that fluctuate with the level of production or usage of equipment.

Fixed Maintenance

Scheduled or routine maintenance activities that incur costs regardless of the operational status of equipment.

Relevant Range

The range of activity within which the assumptions about variable and fixed cost behaviors hold true.

Variable Cost

Costs that change in proportion to the level of output or activity in a business operation.