Question
Sparkle Cleaning Services provides cleaning services for offices. They anticipate 3,000 jobs annually. The company has invested $1,800,000 in its facilities and expects an ROI
Sparkle Cleaning Services provides cleaning services for offices. They anticipate 3,000 jobs annually. The company has invested $1,800,000 in its facilities and expects an ROI of 18%. The budgeted costs for the coming year are shown below:
| Cost Item | Per Job ($) | Total ($) |
|---|---|---|
| Direct Materials (Cleaning Supplies) | 20 | 60,000 |
| Direct Labor (Cleaners) | 40 | 120,000 |
| Variable Overhead | 15 | 45,000 |
| Fixed Overhead | - | 360,000 |
| Variable Selling & Admin Expenses | 5 | 15,000 |
| Fixed Selling & Admin Expenses | - | 180,000 |
Required:
- Calculate the total cost per job.
- Determine the desired ROI per job.
- Compute the target price per job.
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Business Ethics Ethical Decision Making & Cases
Authors: O. C. Ferrell, John Fraedrich, Linda Ferrell
8th Edition
1439042233, 978-1439042236
