NARRBEGIN: $13-2$

Scenario $13-2.$ Benjamin has been running his kennel

service for one year. So far, business has been good and

all expenses have been met each month, leaving a small

profit. He has a large building capable of handling a total

of $35$ dogs. Each pen has fresh water supplied through

pipes, an automated feeder, and a heating$/$cooling unit

that keeps each pen at a comfortable $68$ degrees.

Benjamin rents each pen at a price of $$30$ per day. His

total fixed costs each month are $$500.$ Average variable

costs are $$12.$

In Scenario $13-2,$ based on the numbers above, what

is Benjamin's breakeven point?

a$.26$ pen rentals each month

b$.28$ pen rentals each month

c$.30$ pen rentals each month

d$.32$ pen rentals each month

In Scenario $13-2,$ if Benjamin's fixed costs were to rise

to $$600$ per month while all other variables remained the

same, what would Benjamin's new breakeven point be$?$

a$.30$ pen rentals each month

b$.32$ pen rentals each month

c$.34$ pen rentals each month

d$.36$ pen rentals each month

In Scenario $13-2,$ if Benjamin would like a monthly

profit of $$2,000,$ using the original numbers, calculate his

target return in pen rentals.

a$.136$ pen rentals each month

b$.139$ pen rentals each month

c$.142$ pen rentals each month

d$.145$ pen rentals each month

In Scenario $13-2,$ if Benjamin's fixed costs were to rise

to $$600$ per month while all other variables remained the

same, what would Benjamin's target return in pen rentals

be$,$ using a monthly profit target of $$2,000?$

a$.140$ pen rentals each month

b$.145$ pen rentals each month

c$.150$ pen rentals each month

d$.155$ pen rentals each month

In Scenario $13-2,$ Benjamin would like to determine his

breakeven point in dollars instead of pen rentals. When he

calculated this using the original data, his breakeven point

would be

a$.$ $$834$

b$.$ $$956$

c$.$ $$1,012$

d$.$ $$1,248$

Short Answer

Explain the three primary considerations in setting the

price for a product.Scenario $13-2$ Suppose Regina and Ken receive great satisfaction from their consumption of pizza. Regina would be willing to purchase only one slice and would pay up to $$10$ for it$.$ Ken would be willing to pay $$14$ for his first slice, $$11$ for his second slice, and $$7$ for his third slice. The current market price is $$7$ per slice. Refer to Scenario $13-2.$ How much total consumer surplus do Regina and Ken collectively receive from consuming pizza? a$.$ $$7$ b$.$ $$4$ c$.$ $$3$ d$.$ $$14$