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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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