The Damien Guard Dog Rental Service Has Fixed Costs of $300,000

Essay

The Damien Guard Dog Rental service has fixed costs of $300,000 per month, which include a $50,000 monthly liability insurance premium, in-house legal counsel and six tons of raw meat to feed the service's 200 Rottweilers. Variable costs per dog rented per day, which consists mostly of transportation costs and hazardous duty pay for the drivers who have to deliver the dogs, averages about $14. If Damien charges $74 per day to rent a dog, and the person or business who rents the dog is responsible for anything such as furniture, doors or employees that the dog might eat or otherwise destroy, how many dog-rental days the number of dogs rented times the number of days each is rented) must Damien have each month to breakeven? To make $84,000 per month before taxes?