Question
Home Shine is estimating its fixed and variable costs. The following costs were incurred during the month of May by Home Shine when 200 homes
Home Shine is estimating its fixed and variable costs. The following costs were incurred during the month of May by Home Shine when 200 homes were cleaned:
Cleaning supplies | $ 2,400 |
Hourly wages | 4,850 |
Depreciation - cleaning equipment | 650 |
Manager’s salary | 1,400 |
Auto commuting expenses | 1,600 |
Office rent | 850 |
Total costs | $11,750 |
A. Using the account analysis method, determine the total cost function for Home Shine.
B. What would the total cost be if 100 homes were cleaned?
C. What would the total cost be if 450 homes were cleaned?
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College Accounting Chapters 1-30
Authors: John Price, M. David Haddock, Michael Farina
14th edition
978-1259284861, 1259284867, 77862392, 978-0077862398
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