abby is looking to expand her pet grooming business and wants to evaluate the profitability of a potential new market. the area she is looking at has 2,000 homes and abby estimates that 20 percent of them would be likely to use her service. she charges $45 per grooming and on average customers groom their pets six times a year. abby estimates her variable costs to expand her business will be $10 per grooming and her fixed costs are $10,000. how much profit would abby make on this new segment?

Question

05-10-2022
Business

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abby is looking to expand her pet grooming business and wants to evaluate the profitability of a potential new market. the area she is looking at has 2,000 homes and abby estimates that 20 percent of them would be likely to use her service. she charges $45 per grooming and on average customers groom their pets six times a year. abby estimates her variable costs to expand her business will be $10 per grooming and her fixed costs are $10,000. how much profit would abby make on this new segment?

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