Question

Janice Huffman has decided to start Thornton Cleaning, a residential housecleaning service company. She is able to rent cleaning equipment at a cost of $720 per month. Labor costs are expected to be $65 per house cleaned and supplies are expected to cost $8 per house.

Required

1. Determine the total expected cost of equipment rental and the average expected cost of equipment rental per house cleaned, assuming that Thornton Cleaning cleans 10, 20, or 30 houses during one month. Is the cost of equipment a fixed or a variable cost?

2. Determine the total expected cost of labor and the average expected cost of labor per house cleaned, assuming that Thornton Cleaning cleans 10, 20, or 30 houses during one month. Is the cost of labor a fixed or a variable cost?

3. Determine the total expected cost of supplies and the average expected cost of supplies per house cleaned, assuming that Thornton Cleaning cleans 10, 20, or 30 houses during one month. Is the cost of supplies a fixed or a variable cost?

4. Determine the total expected cost of cleaning houses, assuming that Thornton Cleaning cleans 10, 20, or 30 houses during one month.

5. Determine the average expected cost per house, assuming that Thornton Cleaning cleans 10, 20, or 30 houses during one month.

	No. of Houses Cleaned 10 20 30 Total expected rental cost $720 $720 $720 Average per unit rental cost $24.00 The cost of equipment is a Fixed cost

	No. of Houses Cleaned 10 20 30 Average per unit labor cost $65 Total labor cost $1,950 The cost of labor is a Variable cost

	No. of Houses Cleaned 10 20 30 Average per unit supplies cost $10 Total cost of supplies $300 The cost of supplies is a Variable cost

	No. of Houses Cleaned 10 20 30 Total expected cost $2,970

	No. of Houses Cleaned 10 20 30 Average cost per unit $99.00

Answer 1

Please hit LIKE button if this helped. For any further explanation, please put your query in comment, will get back to you.
No. of Houses Cleaned	10	20	30
Total expected rental cost	$                                                          720.00	$       720.00	$                 720.00	a
Average per unit rental cost	$                                                            72.00	$         36.00	$                    24.00
The cost of equipment is a			Fixed cost
No. of Houses Cleaned	10	20	30
Average per unit labor cost	$                                                            65.00	$         65.00	$                    65.00
Total labor cost	$                                                          650.00	$   1,300.00	$              1,950.00	b
The cost of labor is a			Variable cost
No. of Houses Cleaned	10	20	30
Average per unit supplies cost	$                                                              8.00	$            8.00	$                      8.00
Total cost of supplies	$                                                            80.00	$       160.00	$                 240.00	c
The cost of supplies is a			Variable cost
No. of Houses Cleaned	10	20	30
Total expected cost	$                                                      1,450.00	$   2,180.00	$              2,910.00	a+b+c=d
No. of Houses Cleaned	10	20	30
Average cost per unit	$                                                          145.00	$       109.00	$                    97.00	d/No of Houses