Assume you have decided to buy an advertisement in the local newspaper to publicize your new pet
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Assume you have decided to buy an advertisement in the local newspaper to publicize your new pet grooming service. The cost of the ad is $1000. You have decided to charge $40 for a dog grooming, and you want to make $20 for each dog. How many dogs do you have to groom to break even on the cost of the ad? What is your break-even point if you charge $50 per dog?
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According to breakeven analysis the fixed cost is 100...View the full answer
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