Question

Bruno & Court is a nonprofit organization that captures stray deer bewildered within residential communities. Fixed costs ar e $20,000. The variable cost of capturing each deer is $10 each. Bruno & Court is funded by a local philanthropy in the amount of $64,000 for 2016. How many deer can Bruno & Court capture during 2016? 

Answer 1

We know that,

Total fund received = Total cost

Total fund received = Fixed cost + variable cost

$64,000 = $20,000 + $10 × variable cost

$44,000 = $10 × variable cost

So, the variable cost = $44,000 ÷ $10 = 4,400 deer

We simply make the equation, so that the calculation can be done in easy manner. And the total cost include both the fixed cost and the variable cost 

4,400 deer