Joanne Angelina has decided to start Germanotta Cleaning, a residential house cleaning service company and has hired you as her accounting overlord. After some research she found that she is able to rent cleaning equipment at a cost of $770 per month. Labor costs are expected to be $85 per house cleaned and supplies are expected to cost $8 per house. 

Required 

a. For her first year Joanne expects initial house cleaning demands to range between 30-50 houses. With that she has come to you, her trusty accounting overlord to determine the total expected cost of equipment rental and the average expected cost of equipment rental per house cleaned, assuming that Finch Cleaning cleans 30, 40, or 50 houses during one month. She would also like to know whether the cost of equipment is 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 Finch Cleaning cleans 30, 40, or 50 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 Finch Cleaning cleans 30, 40, or 50 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 Finch Cleaning cleans 30, 40, or 50 houses during one month. 

e. Determine the average expected cost per house, assuming that Finch Cleaning cleans 30, 40, or 50 houses during one month.

Answer rating: 100% (QA)

a Cost of equipment is Fixed cost Because if you clean one house or more than one the rent will be f... View the full answer