The fixed costs per unit will________.

A. remain the same as production levels change

B. increase as production increases

C. increase as production decreases

D. decrease as production decreases

KimAiredale, a manager ofWaggers, Inc., was reviewing the water bills of a dog daycare and spa. She determined that its highest and lowest bills of$3,600 and$2,800 were incurred in the months of May andNovember, respectively. If 500 dogs were washed in May and 200 dogs were washed inNovember, what was the variable cost per dog associated with thecompany's waterbill? (Round your answer to the nearestcent.)

A. $4.00

B. $14.00

C. $7.20

D. $2.67