Question

Bruno & Court is a nonprofit organization that captures stray deer bewildered within residential communities. Fixed costs are $15,000. The variable cost of capturing each deer is $10 each. Bruno & Court is funded by a local philanthropy in the amount of $48,000 for 2013. How many deer can Bruno & Court capture during 2013?

Answer 1

Answer:

3,300 deer

Explanation:

Total funds available to meet the entire cost of capturing stray deer = $48,000

This represents the total funds available as the Bruno & Court is a non profit organisation, it needs funding and as provided in the given case total funds available are $48,000 through local philanthropy.

Associated fixed cost in this activity = $15,000

Thus, maximum variable cost shall be = $48,000 - $15,000

= $33,000

Variable cost per deer = $10

Total number of deer to be captured = $33,000/$10 = 3,300 deer