Home Shine is estimating its fixed and variable costs. The following costs were incurred during the month of May by Home Shine when 200 homes were cleaned:

Cleaning supplies	$ 2,400
Hourly wages	4,850
Depreciation - cleaning equipment	650
Manager’s salary	1,400
Auto commuting expenses	1,600
Office rent	850
Total costs	$11,750

A. Using the account analysis method, determine the total cost function for Home Shine.

B. What would the total cost be if 100 homes were cleaned?

C. What would the total cost be if 450 homes were cleaned?

Answer rating: 100% (QA)

A The account analysis method separates costs into fixed and variable components Based on the inform... View the full answer