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Chapter 13: Problem 2

Isabella runs a pet salon. She is currently grooming 125 dogs per week. If instead of grooming 125 dogs, she grooms 126 dogs, she will add \(\$ 68.50\) to her costs and \(\$ 60.00\) to her revenues. What will be the effect on her profit of grooming 126 dogs instead of 125 dogs?

Short Answer

Expert verified
The profit will decrease by \(\$ 8.50\).

Step by step solution

01

Calculate the Additional Revenue

The extra revenue gained by grooming one more dog is stated as \(\$ 60.00\).
02

Calculate the Additional Cost

The additional cost of grooming one more dog is given as \(\$ 68.50\).
03

Calculate the Profit Difference

By grooming one extra dog, the profit change can be calculated by subtracting the extra cost from the extra revenue. This gives, \(\$ 60.00 - \$ 68.50 = -\$ 8.50\).

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