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Emco Rental Management provides service to clients who wish to rent out their properties to summer vacationers. Emco provides three basic services: Website management, Basic
Emco Rental Management provides service to clients who wish to rent out their properties to summer vacationers. Emco provides three basic services: Website management, Basic rental contract management, and Cleaning and inspection.
Emco charges its clients a flat of their earned rents and evaluates profitability for each of their clients against an average share of Emcos total annual costs. But Elinor Mae, the owner and general manager, wants to get better idea of customer profitability, so she has decided to put together a simple ABC cost analysis.
Elinors assessment of Website management is that its costs are simply driven by the number of customers she has. This contrasts with Basic rental contract management, which is driven by the number of rental contracts, last summer. Cleaning and inspection is done after each rented week. There were rented weeks last summer.
Based on Elinors estimates, the total cost for each of the three activities last year was $ for Website management, $ for Basic rental contract management, and $ for Cleaning and inspection.
Merle Lynch one of Emcos customers, had oneweek contracts last summer. According to Elinors estimates, what was the total ABC cost for the services used by Mr Lynch last year?
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None of the other three answers is correct.
$
$
$
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