Question

Bruno & Court is a nonprofit organization that captures stray deer bewildered within residential communities. Fixed costs are $20,000. The variable cost of capturing each deer is $10 each. Bruno & Court is funded by a local philanthropy in the amount of $64,000 for 2016. How many deer can Bruno & Court capture during 2016?

Answer 1

Answer:

4,400 deer

Explanation:

We know that,

Total fund received = Total cost

Total fund received = Fixed cost + variable cost

$64,000 = $20,000 + $10 × variable cost

$44,000 = $10 × variable cost

So, the variable cost = $44,000 ÷ $10 = 4,400 deer

We simply make the equation, so that the calculation can be done in easy manner. And the total cost include both the fixed cost and the variable cost