The groomers at Rensing normally work a total of 627 direct labor hours during each month. Each groo 1 answer below »

The groomers at Rensing normally work a total of 627 direct labor hours during each month. Each grooming job normally takes a groomer 1.30 hours. Milo wants to earn a profit equal to 35% of the costs incurred. Determine what he should charge each pet owner for grooming.(Round answer to 2 decimal places, e.g. 10.25.)?

Charge per client:

Rensing Groomers is in the dog-grooming business. Its operating costs are described by the following formulas: Grooming supplies (variable) y = $0 + $3x Direct labor (variable) y = $0 + $13x Overhead (mixed) y = $10,500 + $1x

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Milo, the owner, has determined that direct labor is the cost driver for all three categories of costs.

627*3 =981

627*13 =8151

627*1=627+10,500=11,127

TOTAL COST: 20259

 

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