Reference no: EM132834256
Janice Huffman has decided to start Benson Cleaning, a residential housecleaning service company. She is able to rent cleaning equipment at a cost of $770 per month. Labor costs are expected to be $60 per house cleaned and supplies are expected to cost $6 per house.
Required
Problem 1: Determine the total expected cost of equipment rental and the average expected cost of equipment rental per house cleaned, assuming that Benson Cleaning cleans 20, 30, or 40 houses during one month. Is the cost of equipment a fixed or a variable cost?
Problem 2: Determine the total expected cost of labor and the average expected cost of labor per house cleaned, assuming that Benson Cleaning cleans 20, 30, or 40 houses during one month. Is the cost of labor a fixed or a variable cost?
Problem 3: Determine the total expected cost of supplies and the average expected cost of supplies per house cleaned, assuming that Benson Cleaning cleans 20, 30, or 40 houses during one month. Is the cost of supplies a fixed or a variable cost?
Problem 4: Determine the total expected cost of cleaning houses, assuming that Benson Cleaning cleans 20, 30, or 40 houses during one month.
Problem 5: Determine the average expected cost per house, assuming that Benson Cleaning cleans 20, 30, or 40 houses during one month.
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