Accounting Your sister-in-law started her own online business, RainingCats&Dogs, pet walking business. She runs her business from her kitchen. Her supplies consist of 10 leashes she bought online ($150) and a new pair of sneakers ($100). Assume the leashes and sneakers are good forever. She also uses her own car to drive to her clients’ houses to walk the pets. 

Her car is paid off. She is licensed by the city ($100/per year fee), renewable every year. She recycles the grocery plastic bags for cleaning after the pets during her pet-walking business. Her only other cost is the gas for the car, which totaled $100 in one month. Make no other assumptions about anything else. At the end of her first month of business, your sister-in-law is brimming with pride, she made $500 (cash) in revenue from walking 40 pets. 

Q: As a managerial economics guru, calculate the price she charged (assuming she charged one single price per pet), the TC, VC, FC, ATC, AVC, AFC, sunk cost (if any), and gently explain to your sister-in-law whether she should continue operating.

Answer rating: 100% (QA)

Total Costs TC are the total costs she incurs These would be the leashes 150 the sneakers 100 the li... View the full answer