LAUNDRY COST PER USE EXERCISE

As the executive housekeeper of a resort in Colorado Springs, you are presented with two types of bath towel similar in quality offered by two companies: Valiant Industries, and H.W. Baker Linen Co.

The Valiant Industries towel weighs 4 pounds; its cost per wash is $0.20; its guaranteed life is 200 washings; and it sells for $72.00 per dozen.

The towel sold by H.W. Linen Co. weighs 4.5 pounds; its cost per wash is $0.25; its guaranteed life is 180 washings; and its price is $6.25 each.

The resort has 500 rooms, each one furnished with one king bed. The projected room occupancy for one year is 80 percent. The forecasted person per room average occupancy is 1.5. It is estimated that each guest uses an average of 1.5 bath towel per day.

Find:

The cost-per-use of the Valiants towel.

The cost-per-use of the Bakers towel.

The saving per year if you purchase the towel with the lowest cost-per-use.