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Problem 2 - 1 8 A ( Static ) Cost behavior and averaging LO 2 - 1 Janice Huffman has decided to start Janice Cleaning,
Problem A Static Cost behavior and averaging LO
Janice Huffman has decided to start Janice Cleaning, a residential housecleaning service company. She is able to rent cleaning
equipment at a cost of $ per month. Labor costs are expected to be $ per house cleaned and supplies are expected to cost $
per house.
Required
a Determine the total expected cost of equipment rental and the average expected cost of equipment rental per house cleaned,
assuming that Janice Cleaning cleans or houses during one month. Is the cost of equipment a fixed or a variable cost?
b Determine the total expected cost of labor and the average expected cost of labor per house cleaned, assuming that Janice
Cleaning cleans or houses during one month. Is the cost of labor a fixed or a variable cost?
c Determine the total expected cost of supplies and the average expected cost of supplies per house cleaned, assuming that Janice
Cleaning cleans or houses during one month. Is the cost of supplies a fixed or a variable cost?
d Determine the total expected cost of cleaning houses, assuming that Janice Cleaning cleans or houses during one month.
e Determine the average expected cost per house, assuming that Janice Cleaning cleans or houses during one month.
Complete this question by entering your answers in the tabs below.
Determine the total expected cost of supplies and the average expected cost of supplies per house cleaned, assuming that
Janice Cleaning cleans or houses during one month. Is the cost of supplies a fixed or a variable cost?
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