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Oceanview Fine Dining has 970 restaurants across the United States. Maintaining a clean environment for customers is a key success factor at Oceanview. Each restaurant

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Oceanview Fine Dining has 970 restaurants across the United States. Maintaining a clean environment for customers is a key success factor at Oceanview. Each restaurant is cleaned regularly after closing. In addition to regular cleaning, from 5 to 20 times a month, depending on various factors including the amount of business, a special treatment is given to the floors consisting of breaking down the old wax and rewaxing. So the total number of times a restaurant is cleaned varies from 35 to 50 times a month. The two most costly resources needed to clean an Oceanview restaurant are labor and supplies. The cost driver for both resources is number of times a restaurant is cleaned. Cleaning laborers are paid the same wages regardless of the number of times a restaurant is cleaned. Cleaning supplies is a variable cost. The cost of supplies used per regular cleaning and per special cleaning is about the same. Suppose one of the local Oceanview restaurants in Orlando has 7,000 square feet. In October, the restaurant was cleaned 35 times. The cost of cleaning labor was $18,000 for October, and cleaning supplies cost $7,350. The months of November and December are typically much busier, so the restaurant manager expects to clean 45 times and 50 times in November and December respectively. Read the requirements Requirement 1. Prepare a table that shows how labor cost, cleaning supplies cost, total cost, and total cost per cleaning changes in response to number of times the restaurant is cleaned. Use volumes of 35, 40, 45, and 50 times cleaned. What is the predicted total cost of cleaning for November and December? Begin by preparing a table that shows how labor cost, cleaning supplies cost, total cost, and total cost per square foot cleaned changes in response to the square feet cleaned. (Do not round until the final answer for the cost per cleaning. Then round to the nearest whole dollar.) Square Feet Times Labor Cleaning Supplies Cost Total Cost per Cleaning Cleaned Cleaned Cost Cost 35 40 45 50 Requirements 1. Prepare a table that shows how labor cost, cleaning supplies cost, total cost, and total cost per cleaning changes in response to number of times the restaurant is cleaned. Use volumes of 35, 40, 45, and 50 times cleaned. What is the predicted total cost of cleaning for November and December? 2. Suppose Oceanview can hire an outside cleaning company to clean the restaurant as needed. The charge rate for cleaning is $0.24 per square foot. If the outside cleaning company is hired, Oceanview can lay off the workers who are now cleaning and will spend nothing on cleaning supplies. Will Oceanview save money with the outside cleaning company over the next two months? Prepare a schedule that supports your answer. What information would you need to make a recommendation about hiring the outside cleaning company on a permanent basis? Oceanview Fine Dining has 970 restaurants across the United States. Maintaining a clean environment for customers is a key success factor at Oceanview. Each restaurant is cleaned regularly after closing. In addition to regular cleaning, from 5 to 20 times a month, depending on various factors including the amount of business, a special treatment is given to the floors consisting of breaking down the old wax and rewaxing. So the total number of times a restaurant is cleaned varies from 35 to 50 times a month. The two most costly resources needed to clean an Oceanview restaurant are labor and supplies. The cost driver for both resources is number of times a restaurant is cleaned. Cleaning laborers are paid the same wages regardless of the number of times a restaurant is cleaned. Cleaning supplies is a variable cost. The cost of supplies used per regular cleaning and per special cleaning is about the same. Suppose one of the local Oceanview restaurants in Orlando has 7,000 square feet. In October, the restaurant was cleaned 35 times. The cost of cleaning labor was $18,000 for October, and cleaning supplies cost $7,350. The months of November and December are typically much busier, so the restaurant manager expects to clean 45 times and 50 times in November and December respectively. Read the requirements Requirement 1. Prepare a table that shows how labor cost, cleaning supplies cost, total cost, and total cost per cleaning changes in response to number of times the restaurant is cleaned. Use volumes of 35, 40, 45, and 50 times cleaned. What is the predicted total cost of cleaning for November and December? Begin by preparing a table that shows how labor cost, cleaning supplies cost, total cost, and total cost per square foot cleaned changes in response to the square feet cleaned. (Do not round until the final answer for the cost per cleaning. Then round to the nearest whole dollar.) Square Feet Times Labor Cleaning Supplies Cost Total Cost per Cleaning Cleaned Cleaned Cost Cost 35 40 45 50 Requirements 1. Prepare a table that shows how labor cost, cleaning supplies cost, total cost, and total cost per cleaning changes in response to number of times the restaurant is cleaned. Use volumes of 35, 40, 45, and 50 times cleaned. What is the predicted total cost of cleaning for November and December? 2. Suppose Oceanview can hire an outside cleaning company to clean the restaurant as needed. The charge rate for cleaning is $0.24 per square foot. If the outside cleaning company is hired, Oceanview can lay off the workers who are now cleaning and will spend nothing on cleaning supplies. Will Oceanview save money with the outside cleaning company over the next two months? Prepare a schedule that supports your answer. What information would you need to make a recommendation about hiring the outside cleaning company on a permanent basis

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