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24 April, 07:23

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?

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  1. 24 April, 07:32
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    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
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