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Flynn Ltd provides an office cleaning service to commercial customers. It offers the following three packages, ranging from an intensive full clean involving polishing and
Flynn Ltd provides an office cleaning service to commercial customers. It offers the following three packages, ranging from an intensive full clean involving polishing and carpet cleaning, as well as hoovering and dusting) to a speedy dusting only contract: Full Clean Hoovering & Dusting Dusting Only 100 Charge per office (E) Hours of cleaning required per office The only variable cost to Flynn Ltd of cleaning the offices is the hourly rate paid to the cleaning staff of 4 per hour (as the customers' supply cleaning materials). The fixed costs of Flynn Ltd amount to 100,000 per annum. Flynn Ltd prides itself on the quality of its staff, who all undertake an intensive in-house training programme after joining the firm. The company employs ten cleaners, and in the short-term is unable to recruit any more staff. Each cleaner works 40 hours per week for 50 weeks a year (nothing compared to the average Introduction to Accounting student!). Having conducted some market research into the requirements of customers for the coming year, the management of Flynn Ltd has established the following demand for each of their cleaning packages: Full Clean Hoovering and Dusting Dusting Only Number of offices 1,500 2.000 3.000 Required Calculate the maximum amount of profit that Flynn Ltd can earn in the coming year, based on the above information
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