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Miranda was reviewing the water bill for her dog day-care and spa and determined that her highest bill, $5,000, occurred in July when she washed 500 dogs and her lowest bill, $3,600. occurred in February when she washed 325 dogs. What was the variable cost per dog associated with Miranda's water bill?

a) $7.20

b) $11.08

c) $10.00

d) $8.00

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zainsubhani

Answer:

Option D is correct ($8.00)

Variable cost per dog= $8

Explanation:

Option D is correct ($8.00)

Given Data:

Number of dogs washed in july=500

Bill in July=$5,000

Number of dogs washed in February=325

Bill in February=$3,600

Required:

The variable cost per dog associated with Miranda's water bill?

Solution:

Variable cost per dog=[tex]\frac{Change\ in \ total\ cost}{Change\ in\ volume\ of\ activity}[/tex]

Change in total cost=$5000-$3600

Change in total cost=$1,400

Change in volume of activity=500-325

Change in volume of activity=175 dogs

Variable cost per dog=[tex]\frac{\$1,400}{175}[/tex]

Variable cost per dog= $8

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