Question

4-44. You are given the following informa­tion about We-Save-Um Animal Rescue (WSU): Number of dogs rescued...

4-44. You are given the following informa­tion about We-Save-Um Animal Rescue (WSU): Number of dogs rescued and placed by WSU-600 Average length of stay for a dog-10 days Daily cost of feeding one dog-$.90 Number of veterinary visits per dog-1.2 Cost per veterinary visit-$35 Cost of spay /neuter and transportation per dog rescued-$45 Cost of the kennel and related
equipment-$300,000 Useful life of the kennel and related equipment-20 years WSU uses straight-line depreciation. Salvage value of the kennel and related equipment-$0 WSU has three full-time employees-an executive director who earns $40,000 per year, an evaluator/trainer who earns $30,000 per year, and a kennel man­ ager who earns $25,000. Fringe bene­fits equal 25 percent of each employee's annual salary. WSU expects to place all of the dogs that it takes into the program by the last day of the fiscal year. It charges an adoption fee of $225 per dog. Experience has shown that 15 percent of the people elect to make an additional donation to WSU at the time of adoption. Historically, these extra donations have averaged $200. In addition, WSU has an active fund­raising program and expects to raise $40,000 in donations during the fis­cal year. The executive director wants to know how many dogs she has to place next year to break even. Calculate WSU's break-even.

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