Estimated Operating costs:
January = $15,000 x 0.99^1 = $14,850
June = $15,000 x 0.99^6 = $14,122
December = $15,000 x 0.99^12 = $13,296
January | February | March | |
Estimated Operating costs | $14,850 | $14,122 | $13,296 |
Brief Exercise 10-18 (LO 10-6, 10-7) Easy Clean operates a chain of dry cleaners. It is experimenting with the use...
Easy Clean operates a chain of dry cleaners. It is experimenting with the use of a continuous Improvement (1.e., kalzen) budget for operating expenses. Currently, a typical location has operating expenses of $22,000 per month. Plans are in place to achieve labor and utility savings. The associated operational changes are estimated to reduce monthly operating expenses by a factor of 0.99 beginning in January What is the estimated operating expenses for January? For June? For December? (Do not round Intermediate...