Paradise Pub is a high-end dog hotel located in New York. Assume that in March, when dog-days occupancy was at an annual low of 500 days, the average cost per dog-day was $26. In July, when dog-days were at a capacity level of 4,500, the average cost per dog-day was $10. (a) Develop an equation for monthly operating costs. (Let X = dog-days per month) Total cost = $ _________ + $ _________ * _______ (b) Determine the average cost per dog-day at an annual volume of 28,000 dog-days. (Round to the nearest cent.)

Paradise Pub is a high-end dog hotel located in New York. Assume that in March, when dog-days occupancy was at an annual low of 500 days, the average cost per dog-day was $26. In July, when dog-days were at a capacity level of 4,500, the average cost per dog-day was $10. (a) Develop an equation for monthly operating costs. (Let X = dog-days per month) Total cost = $ _____ + $ _ * ___ (b) Determine the average cost per dog-day at an annual volume of 28,000 dog-days. (Round to the nearest cent.)

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter3: Cost Behavior And Cost Forecasting

Section: Chapter Questions

Problem 3DQ: Suppose a company finds that shipping cost is 3,560 each month plus 6.70 per package shipped. What...

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Developing an Equation from Average Costs Paradise Pub is a high-end dog hotel located in New York. Assume that in March, when dog-days occupancy was at an annual low of 500 days, the average cost per dog-day was $26. In July, when dog-days were at a capacity level of 4,500, the average cost per dog-day was $10. (a) Develop an equation for monthly operating costs. (Let X = dog-days per month) Total cost = $ -$ *X (b) Determine the average cost per dog-day at an annual volume of 28,000 dog-days. (Round to the nearest cent.) $
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