Stephen runs a pet salon. he is currently grooming 120 dogs per week. if instead of grooming 120 dogs, he grooms 121 dogs, he will add $68.24 to his costs and $66.78 to his revenues. what will be the effect on his profits of grooming 121 dogs instead of 120 dogs? stephen's profits will change by $ nothing. (enter your response rounded to two decimal places.)

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Business

Anabella Porter

3 March, 19:41

Stephen runs a pet salon. he is currently grooming 120 dogs per week. if instead of grooming 120 dogs, he grooms 121 dogs, he will add $68.24 to his costs and $66.78 to his revenues. what will be the effect on his profits of grooming 121 dogs instead of 120 dogs? stephen's profits will change by $ nothing. (enter your response rounded to two decimal places.)

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Kyle Calhoun · Answer 1

Profits will change by - $1.46. Just remember that profit = price - overhead. His price is $66.78 and his overhead is $68.24. So for the 121st dog we have: $66.78 - $68.24 = - $1.46 So if Stephen decides to groom that 121st dog, he's going to be losing $1.46 and therefore his profits will be $1.46 lower.