Question
1. Janice Huffman has decided to start Thornton Cleaning, a residential housecleaning service company. She is able to rent cleaning equipment at a cost of
1. Janice Huffman has decided to start Thornton Cleaning, a residential housecleaning service company. She is able to rent cleaning equipment at a cost of $730 per month. Labor costs are expected to be $55 per house cleaned and supplies are expected to cost $9 per house.
A. Determine the total expected cost of equipment rental and the average expected cost of equipment rental per house cleaned, assuming that Thornton Cleaning cleans 30, 40, or 50 houses during one month. Is the cost of equipment a fixed or a variable cost?
# Houses Cleaned | 30 | 40 | 50 |
Total Expected Cost | ? | ? | ? |
Average Per Unit Rental Cost | ? | ? | ? |
The Cost of Equipment is a... (Fixed or Variable Cost) | N/A | N/A | ? |
B. Determine the total expected cost of labor and the average expected cost of labor per house cleaned, assuming that Thornton Cleaning cleans 30, 40, or 50 houses during one month. Is the cost of labor a fixed or a variable cost?
# Houses Cleaned | 30 | 40 | 50 |
Average Per Unit Labor Cost | ? | ? | ? |
Total Labor Cost | ? | ? | ? |
The cost of labor is a... (Fixed or Variable Cost) | N/A | N/A | ? |
C. Determine the total expected cost of supplies and the average expected cost of supplies per house cleaned, assuming that Thornton Cleaning cleans 30, 40, or 50 houses during one month. Is the cost of supplies a fixed or a variable cost?
# Houses Cleaned | 30 | 40 | 50 |
Average Per Unit Supplies Cost | ? | ? | ? |
Total Cost of Supplies | ? | ? | ? |
The cost of supplies is a... (Fixed or Variable Cost) | N/A | N/A | ? |
D. Determine the total expected cost of cleaning houses, assuming that Thornton Cleaning cleans 30, 40, or 50 houses during one month.
# Houses Cleaned | 30 | 40 | 50 |
Total Expected Cost | ? | ? | ? |
E. Determine the average expected cost per house, assuming that Thornton Cleaning cleans 30, 40, or 50 houses during one month
# Houses Cleaned | 30 | 40 | 50 |
Average Cost Per Unit | ? | ? | ? |
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