MHB Rover's Friends: Calculating the Break-Even Price for Dog Washing

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Rover's Friends offers dog washing services with a supply cost of $3 and wages of $5 per dog, alongside fixed monthly costs of $300 for equipment and facilities. To break even, the total costs must equal total revenue, calculated as 30 dogs washed each month. The break-even price can be determined by solving the equation where total costs equal revenue generated from washing dogs. The terms "contribution margin" and "contribution rate" are mentioned but not defined, leading to confusion among participants. Understanding these concepts is essential for accurately calculating the break-even price for the service.
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Rover’s Friends provides dog washing services. For each dog, supplies cost $3 and wages are $5. To provide this service, a special room and equipment are needed, at a cost of $300 per month. Rover’s Friends maintains an average of 30 dogs washed each month. What must Rover’s Friends charge as a price for the dog washing service to break even?
(a) contribution margin;
(b) contribution rate;
(c) break-even point in sales dollars

Thank you
 
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Ursus said:
Rover’s Friends provides dog washing services. For each dog, supplies cost \$3 and wages are \$5. To provide this service, a special room and equipment are needed, at a cost of \$300 per month. Rover’s Friends maintains an average of 30 dogs washed each month. What must Rover’s Friends charge as a price for the dog washing service to break even?
(a) contribution margin;
(b) contribution rate;
(c) break-even point in sales dollars

Thank you

monthly cost ...

30(\$3+\$5)+\$300

revenue ...

30p ,where p is the price charged

break even point is where cost = revenue ... now what?
 
Solving the original question, "what is the break-even price?", is easy, especially given skeeter's post. But I have no idea what "contribution margin" and "contribution rate" mean! Those are not standard "mathematics terms" and should be defined in the problem.
 
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