Question

QuietClean Inc. is an office building housekeeping contractor that employs mostly migrant labor to clean small office buildings. Most of the work is second shift after the office workers of the firm's clients have gone home for the day. Generally the professional housekeeper(s) arrive driving a van that also has the material and equipment for cleaning at 5:00 and spend the next seven hours emptying waste baskets, vacuuming, cleaning the lavatories, mopping the floors, sponging off desks, etc. The following is some financial information regarding the business: Rent for the Headquarters Liability Insurance Cleaning Staff Wages Revenue 6,000,000 160,000 60 Depreciation Selling Expense 360,000 300,000 2,400,000 129,600 300,000 Fuel, Tires etc. for the Van Interest Expense Vacuum bags, sponges and 100,000 Heating and Electricity Chemical Cleaning Agents Staff and Admin Salaries 160,000 other short-lived supplies 600,000 Profit taxes 600,000 Assets 300,000 1,800,000

Answer 1

Revenue		6,000,000
Operating Expenses
Selling, General and Administrative
Selling Expense	300,000
Depreciation	360,000
Fuel, tires etc. for the Van	100,000
Heating and Electricity	160,000
Chemical Cleaning Agents	600,000
Cleaning Staff Wages	2,400,000
Supplies	300,000
Staff and Admin Salaries	600,000
Rent of the Headquarters	160,000
Liability Insurance	60,000	5,040,000
Total Operating Expenses		5,040,000
Operating Profit		960,000
Operating Profit Margin		16%