Question

Skittles Pet store provides a dog wash service. Its highest and lowest bills of $3800 and $2400 were incurred in the months of May and November, respectively. If 500 dogs were washed in May and 200 dogs were washed in November what was the fixed cost associated with the company's water bill? (Round any intermediate calculations to the nearest cent and your final answer to the nearest dollar.)

a.$1400
b.$1467
c.$3800
d.$2400

Answer 1

The fixed cost associated with Skittles Pet Store's water bill is calculated to be $2400 by solving the equations obtained from the total cost data for May and November, and the number of dogs washed in those months.

Step-by-step explanation:

To calculate the fixed cost associated with the company's water bill at Skittles Pet Store, we need to use the data provided for the months of May and November. Given that the bills were $3800 and $2400 respectively, and 500 and 200 dogs were washed in those months, we can set up two equations based on the formula for total cost, which is defined as TC = VC + FC, where TC is the total cost, VC is the variable cost, and FC is the fixed cost.

For May (500 dogs washed): 3800 = 500x + FC

For November (200 dogs washed): 2400 = 200x + FC

Solving these equations simultaneously allows us to find the fixed cost (FC) and the variable cost per dog (x). After performing the calculations and subtracting the second equation from the first, we find that x = 7. The fixed cost FC can then be calculated by substituting the value of x back into either equation. Using the November data, FC = 2400 - 200(7) = $2400.

Therefore, the fixed cost associated with Skittles Pet Store's water bill is $2400, which corresponds to option d.