Question

Janice Huffman has decided to start Franklin Cleaning, a residential housecleaning service company. She is able to rent cleaning equipment at a cost of $750 per month. Labor costs are expected to be $90 per house cleaned and supplies are expected to cost $6 per house. Required a. Determine the total expected cost of equipment rental and the average expected cost of equipment rental per house cleaned, assuming that Franklin Cleaning cleans 15, 25, or 35 houses during one month. Is the cost of equipment a fixed or a variable cost? b. Determine the total expected cost of labor and the average expected cost of labor per house cleaned, assuming that Franklin Cleaning cleans 15, 25, or 35 houses during one month. Is the cost of labor a fixed or a variable cost? c. Determine the total expected cost of supplies and the average expected cost of supplies per house cleaned, assuming that Franklin Cleaning cleans 15, 25, or 35 houses during one month. Is the cost of supplies a fixed or a variable cost? d. Determine the total expected cost of cleaning houses, assuming that Franklin Cleaning cleans 15, 25, or 35 houses during one month. e. Determine the average expected cost per house, assuming that Franklin Cleaning cleans 15, 25, or 35 houses during one month. Complete this question by entering your answers in the tabs below. Required A Required B Required Required D Required Determine the total expected cost of equipment rental and the average expected cost of equipment rental per house cleaned, assuming that Franklin Cleaning cleans 15, 25, or 35 houses during one month. Is the cost of equipment a fixed or a variable cost? (Round "Average per unit" answers to 2 decimal places.) 15 25 No. of Houses Cleaned Total expected rental cost Average per unit rental cost The cost of equipment is a

Answer 1

Requirement A:
Number of Houses cleaned [a]	15	25	35
Total Expected Rental Cost [b]	750	750	750
Average per unit rental cost [b/a]	50	30	21.43
The Cost of Equipment is a			Fixed Cost
Requirement B:
Number of Houses cleaned [a]	15	25	35
Average Per Unit Labor Cost [b]	90	90	90
Total Labor Cost [a*b]	1350	2250	3150
The Cost of Labor is a			Variable Cost
Requirement C:
Number of Houses cleaned [a]	15	25	35
Average Per Unit Supplies Cost [b]	6	6	6
Total Cost of Supplies [a*b]	90	150	210
The Cost of Supplies is a			Variable Cost
Requirement D:
Number of Houses cleaned	15	25	35
Rental Cost [a]	750	750	750
Labor Cost [b]	1350	2250	3150
Supplies Cost [c]	90	150	210
Total Expected Cost [a+b+c]	2190	3150	4110
Requirement E:
Number of Houses cleaned	15	25	35
Average per unit Rental Cost	50	30	21.43
Average per unit Labor Cost	90	90	90
Average per unit Supplies Cost	6	6	6
Average cost per unit	146	126	117.43
Alternative:
Number of Houses cleaned	15	25	35
Total Expected Cost	2190	3150	4110
Average cost per unit	146	126	117.43