Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please answer all parts Part 3 Myrna White is a mobile housekeeper. The price for a standard house cleaning is $150 and takes 5 hours.

image text in transcribed
please answer all parts
Part 3 Myrna White is a mobile housekeeper. The price for a standard house cleaning is $150 and takes 5 hours. Each worker is paid $25/hour, uses $15 of materials and $0.50 per kilometre to use their own vehicle to travel from job to job. The average job is 5 kilometres. Arniz Meyroyan has a family reunion at her house and needs her house freshened up. She offers $75 for this emergency tidy-up service. This service includes vacuuming and cleaning floors, dusting, and cleaning the bathrooms. Only $5 of materials would be used. Requirements: 1. Prepare a spread sheet to determine the differential income if the emergency tidy-up service is priced at $75. The tidy-up service will take 2 hours. Hint: Prepare a full income statement for the Standard Clean service and the Emergency Tidy-Up Cleanup service and compare them. If a $25 surcharge in selling price was added to make the price of $100 for the emergency tidy-up service, how would the differential income change? If the hourly worker rate increased to $30/hour, how would net income change for each of the services? Hint: Redo the full income statement comparisons for the Standard Clean and the Emergency Tidy-up Clean services using the new increased labour rate. What other qualitative and quantitative issue would you need to consider before adding the emergency tidy up cleanup to the list of services the company currently provides? 3

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting Tools For Business Decision Making

Authors: Weygandt, Kimmel, Kieso

4th Edition

0470478535, 978-0470478530

More Books

Students also viewed these Accounting questions