Logan and Berkeley havea thriving dog grooming business which operates 5 hours a day for 4 days a week. They currently have one dog groomer and are considering hiring a second groomer. They believe that after a 12 week period, the second groomer should be able to groom 3 dogs per hour, but only groom 1 dog per hour inthe frst 12 weeks while they learn the ropes. By adding a second groomer, Logan and Berkeley would need to install an additional sink, costing $20,000, and also incur an additional $27 per hour in labour costs. Apart from labour, their current costs are $15 per dog groom (coveringitems such as dog shampoo) and $30,000 in fixed costs per year (eg. rent). They currently charge $50 per dog groom. How many weeks would it take for the second groomer to pay off and make a profit? A 116 B 23.6 C 37.7 D 49.7

Logan and Berkeley havea thriving dog grooming business which operates 5 hours a day for 4 days a week. They currently have one dog groomer and are considering hiring a second groomer. They believe that after a 12 week period, the second groomer should be able to groom 3 dogs per hour, but only groom 1 dog per hour inthe frst 12 weeks while they learn the ropes. By adding a second groomer, Logan and Berkeley would need to install an additional sink, costing $20,000, and also incur an additional $27 per hour in labour costs. Apart from labour, their current costs are $15 per dog groom (coveringitems such as dog shampoo) and $30,000 in fixed costs per year (eg. rent). They currently charge $50 per dog groom. How many weeks would it take for the second groomer to pay off and make a profit? A 116 B 23.6 C 37.7 D 49.7

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter18: Pricing And Profitability Analysis

Section: Chapter Questions

Problem 11E

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