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-X More Info The cost driver for all these resources is number of times cleaned. Wages for cleaning laborers (called porters) and rent for cleaning
-X More Info The cost driver for all these resources is "number of times cleaned." Wages for cleaning laborers (called porters) and rent for cleaning equipment are the same regardless of the number of times the supermarket is cleaned. Supplies used for each regular daily cleaning and for each special cleaning are about the same. A typical store has 53,000 square feet. Regular cleaning is performed each day from midnight until 7:00 AM. Special cleaning of floors and fixtures is performed in the various departments as needed. Special cleaning varies from 10 to 30 times a month depending on the amount of traffic through the store. Thus, the number of times a store is cleaned varies from 40 to 60 times a month. Suppose that in one of Bernard's stores in Minneapolis, cleaning was performed 60 times during March. For the month, the cost of labor and rent on equipment was $27,000 and cleaning supplies used cost $9,600. The sales budget for the next quarter (April through June) and better weather conditions indicate that the store will need to be cleaned 50, 47, and 35 times in April, May, and June respectively. Print Done Maintaining a clean shopping environment is a key success factor for Bernard, a large grocery chain based in Minnesota. Three of the most costly resources needed to clean a supermarket are labor, equipment, and cleaning supplies. (Click the icon to view more information.) Read the requirements Requirement 1. Prepare a table that shows how labor cost, rent, cleaning supplies cost, total cost, and total cost per cleaning changes in response to the number of times the store is cleaned. Show costs for 35, 40, 45, 50, quarter? (Round the cost per cleaning amounts to two decimal places.) and 60 cleanings. What is the predicted total cost of cleaning the Minneapolis store for the next Number of times Labor and Cost per Cleaning supplies cost store is cleaned rent cost Total cost cleaning 35 40 45 50 55 60 The predicted total cost of store cleaning for the next quarter is SL Requirement 2. Prepare a single graph that can be used to predict the fixed, variable, and total cleaning cost of the Bernard store. (Enlarge the graph to maximum size and use the line tool button displayed to draw the graph.) Cleaning Costs at Bernard $45,000 Total Cleaning Cost SO- 30 35 40 45 50 55 60 65 Times Cleaned Click to enlarge graph Click the graph, choose a tool in the palette and follow the instructions to create your graph. Requirement 3. Suppose the manager of the Bernard store can hire an outside cleaning company to clean the store as needed. The charge rate is $720 per cleaning. If the outside cleaning company is hired, Bernard can lay off the workers who are now cleaning the store, eliminate the need for equipment rent, and stop purchasing cleaning supplies. Will Bernard save money with the outside cleaning company over the next quarter? Prepare a schedule that supports your answer. Number of times Costs of Bernard cleaning the store Labor and Cleaning rent cost supplies cost Total cost Outside store is cleaned cleaning cost 50 April May 47 June 35 Bernard save money with the outside cleaning company. Click the graph choose a tool in the palette and follow the instructions to create your graph
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