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Business Math Rover’s Friends

Ursus

New member
Oct 21, 2019
1
Rover’s Friends provides dog washing services. For each dog, supplies cost $3 and wages are $5. To provide this service, a special room and equipment are needed, at a cost of $300 per month. Rover’s Friends maintains an average of 30 dogs washed each month. What must Rover’s Friends charge as a price for the dog washing service to break even?
(a) contribution margin;
(b) contribution rate;
(c) break-even point in sales dollars

Thank you
 

skeeter

Well-known member
MHB Math Helper
Mar 1, 2012
817
Rover’s Friends provides dog washing services. For each dog, supplies cost \$3 and wages are \$5. To provide this service, a special room and equipment are needed, at a cost of \$300 per month. Rover’s Friends maintains an average of 30 dogs washed each month. What must Rover’s Friends charge as a price for the dog washing service to break even?
(a) contribution margin;
(b) contribution rate;
(c) break-even point in sales dollars

Thank you
monthly cost ...

30(\$3+\$5)+\$300

revenue ...

30p ,where p is the price charged

break even point is where cost = revenue ... now what?
 

HallsofIvy

Well-known member
MHB Math Helper
Jan 29, 2012
1,151
Solving the original question, "what is the break-even price?", is easy, especially given skeeter's post. But I have no idea what "contribution margin" and "contribution rate" mean! Those are not standard "mathematics terms" and should be defined in the problem.