Formatting table Clipboard Font Alignment Number IS Styles Cells 012 A B C D E F G H K L M 1 Fixed Cost Variable Cost 2 3 CASE STUDY QUESTION 3 Expenses (Fixed and Variable) 4 Charlene Ripper and Tonya Upper own and run the Ripper-Upper Carpet Cleaning Company. Fixed Cost Total: Variable Cost Total: They charge $100 for each carpet cleaning job. Their expenses are: 9 "Sales commission: 20 percent ($20 for each job sold) 10 Computation of Contribution Margin Operator (the individual who actually pushes the equipment over the carpets: $30 per carpet cleaning job) 11 Sales Price of Cleaning Gas for truck: average $5 per cleaning job Subtract Variable Soap: $2 per job expenses per job Maintenance of cleaning machine: overhaul of machine costs $300 and has to be done after 12 (above) every 100 jobs (Hint: Divide the $300 overhaul costs by the 100 jobs to find the overhaul cost 13 Contribution Margin per job) 14 Rent, office and warehouse: $500 per month 15 Salaries to Charlene and Tonya: total $2,250 per month Break Even Point Receptionist: $1,200 per month (Total Fixed Expenses Insurance: $100 per month Divided by Utilities and telephone: $150 per month 16 Contribution Margin) (Note: All figures for commissions, salaries, and wages include payroll tax expense.) 17 18 19