Question
$1.75 procesing and fixed costs
- From Mathematics: General-Mathematics
- Closed, but you can still post tutorials
- Due on Jul. 08, 2012
- Asked on Jul 05, 2012 at 3:24:15PM
Q:
sUSan Meyer of Meyer's Motor Court in Key West, is considering outsourcing daily room clean-up
of the motel to Duffy's Maid service. Susan rents an average of 50 rooms for each of the 365 nights( 365 x 50=total rooms rented for the year) Cost to clean a room is $12.50.Maid Service is $18.50 per room plus a fixed cost of $25,000 for sundry items such as uniforms with the motel's name. The annual fixed cost for space, equipment and supplies is $61,000. Which is the preffered process for Susan and why?
$1.50
100% Correct with Clear explanation
- This tutorial was purchased 2 times and rated No Rating by students like you.
- Posted on Jul 05, 2012 at 4:42:03PM
Posted by :
A:
Preview: ... 12 .50+$ 3.34=$15.84-------(a)
Option 2:-
Total Fixed cost=$25 ,000
Hence, Fixed cost per room per day=25000/(50x365)
= 1.87$
Total cost of cleaning o ...
The full tutorial is about 110 words long .
$2.00
A+ Solution
- This tutorial was purchased 1 time and rated No Rating by students like you.
- Posted on Jul 05, 2012 at 5:09:06PM
A:
Preview: ... Youself) = 61,000 + 12.50*50*365 = $289,125
...
The full tutorial is about 38 words long .