Question
Susan has decided to start Susan's Cleaning Company, a residential house cleaning service company. She is able to rent cleaning equipment at a cost of
Susan has decided to start Susan's Cleaning Company, a residential house cleaning service company. She is able to rent cleaning equipment at a cost of $750 per month. Labor costs are expected to be $75 per house and Supplies are expected to cost $6 per house.
a) Determine the total cost of equipment rental and the per unit costs of equipment rental, assuming that Susan's Cleaning Company cleans:
10 houses | 20 houses | 30 houses | |
Total expected rental cost | |||
Average per unit rental cost |
b) Determine the total cost of laber and supplies and the per unit cost of labor and supplies, assuming that Susan's cleaning company cleans:
10 houses | 20 houses | 30 houses | |
Total expected labor/supplies cost | |||
Average per unit labor/supplies cost |
c) Susan is planning to charge the homeowner $200 for each cleaning . Prepare an income statement using the contribution margin format for the following scenarios:
10 houses | 20 houses | 30 houses | |
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