Question
Easy Clean operates a chain of dry cleaners. It is experimenting with the use of a continuous-improvement (i.e., kaizen) budget for operating expenses. Currently, a
Easy Clean operates a chain of dry cleaners. It is experimenting with the use of a continuous-improvement (i.e., kaizen) budget for operating expenses. Currently, a typical location has operating expenses of $25,000 per month. Plans are in place to achieve labor and utility savings. The associated operational changes are estimated to reduce monthly operating expenses by a factor of 0.99 beginning in January.
Required:
What are the estimated operating expenses for January? For June? For December? (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.)
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